Thirty years ago, students were able to pay for their own post-secondary education by working summer and part-time jobs. These days, if a student is lucky enough to land a summer job it might pay for their textbooks — maybe.
It’s estimated that the full cost of a four-year undergraduate degree from a Canadian university in 2035 could cost over $152,000*. Many students need to take a student loan in order to complete their studies. There is a way to save for a child’s education — and it’s best if you start early. Learn how with the Money Matters program.
Knowledge is power
ABC Life literacy Canada created Money Matters, a free financial literacy program for adult learners. The program gives you practical information about managing your money. It helps you to better understand spending, borrowing and saving — how you can put the money you have to work for you. It also shows you ways to reach your long-term goals.
For many parents, a long-term goal is to pay for their child’s education. The free workbook Registered Education Savings Plans (RESPs) and Other Ways to Save from the Money Matters program can help you get started on saving for post-secondary education. Many people don’t realize that you don’t need a lot of money to have a registered savings plan. All you need is time. The beauty of the RESP is that if you start it when your child is a baby, it will grow on its own, tax-free, until your child is ready to use it to finance their education.
Sources
* Actuarial Report on the Canada Student Loans Program as at July 31, 2011, Office of the Chief Actuary, Office of the Superintendent of Financial Institutions Canada, 2012
