How can you tell if your baby will want to become a doctor, a teacher, a plumber, a chef or something else? You can’t—and that’s why its best when parents start saving for their child’s education as soon as possible to give their child the option to choose their career.
One of the biggest concerns most students and parents face is the cost of education programs. Tuition costs vary widely by school and by discipline. For example, in 2014–15, average undergraduate tuition fees across Canada were:
Three strategies to help build flexibility into your education savings plan.
Registered Education Savings Plans (RESPs) have compelling benefits:
However, RESPs have a lifetime contribution limit of $50,000 and the CESGs and investment growth must generally be used to pay for qualifying educational programs.
Consider investing additional education savings in two accounts with fewer restrictions:
Reassess your savings strategy as your child becomes a teenager and starts to narrow down career options. If it looks like your child
You don’t have to do all of this on your own. In many cases, you and your child can access additional cash flow from:
As you talk and plan with your child on their future, consult an advisor who can recommend additional strategies to maximize your education savings, build flexibility into your plan and allow your child to fulfill his or her career dreams.
Read more on this topic:
Undergraduate tuition fees for full time Canadian students, by discipline, by province (Canada)
3 strategies to make every dollar count.
Make a plan to help you anticipate and manage these highest-cost years with your kids.
Consider a step-by-step approach if you need to look at other options for your child’s RESP.
