Back to School Debt Series: Planning Your Child’s Education Savings Plan

So far this month as part of our back to school debt series we’ve offered advice to parents of school-aged children and young adults heading to university and college – but what about parents (or even grandparents) of little ones looking towards the future? This week we’ve got you covered with some information on the benefits of an education savings plan for the future.

It is no secret that tuition costs for students in the province have grown exponentially over the past several years. The rising costs of post-secondary education continue to make it incredibly difficult for children to head off to study without having to worry about financial funding. Scholarships are few and far between, and even with these many kids are still reeling from the amounts that are applied to their accounts each semester.

Sure, if you have a little one at home, these issues may seem too far in the future to worry about now; issues that you can worry about when your child enters high school, or closer to the empty nest date. But wait, when you calculate the average cost of a child’s tuition alone at today’s rates ($8000/year university, $3000 - $5000/year college), that is a lot to save for in a short amount of time. And that isn’t even considering the costs associated with your child attending college or university away from home (think rent, food, etc.).

The best way to help your child prepare for these sky-high education costs is by starting to save now. Whether you invest in an education savings plan through your local financial institution, or just try and put away some extra money each month (think birthdays, holidays, etc.), and leave the money to grow, you can actually save a great deal before the dreaded moving out date.

An even greater benefit of the establishment of an education savings plan when your child is young is that you can then use it to teach your child about the importance of saving for the future. Once they have reached an appropriate age, they can begin to contribute to their own fund, and grow motivated as the total in the account also grows. Bonus!

Don’t put off saving for the future until the future lands on your doorstep. Start today with an education savings plan and save whatever you can.

Want to learn more about the benefits of saving for your child’s education, or to deal with a debt that is hindering your ability to do so? Please contact DebtCare Canada today by calling 1-888-890-0888.