The cost of post-secondary education is increasing dramatically while most family incomes are increasing at a much slower rate or not at all. Although many children are contributing to the cost of their own education through summer jobs and savings, families are finding it harder and harder to finance their children’s post-secondary education. Due to the direct relationship between the level of education a child receives and her employability and level of income, it is critical that children still receive post-secondary education.
Children need proper training and education to secure employment in a world that is becoming increasingly competitive and technology driven. This of course means that it is imperative that parents take the necessary steps and plan ahead. These steps include setting educational objectives, analyzing costs, developing funding strategies, and implementing and monitoring the plan.
For more information please visit the Human Resources and Skills Development Canada website.
One way a family can help save is a Registered Education Savings Plan, or RESP, which is an investment vehicle used by parents to save for their children’s post-secondary education in Canada. The principal advantages of RESPs are the access to the Canada Education Savings Grant (CESG) and a source of tax-deferred income.