For those having children, who also want them to get a post secondary education, it’s best to start planning for that expensive schooling sooner rather than later.
According to a new study by BMO, the cost of a four-year university degree for a child born in 20-13 could end up spending more than $140,000 due to inflation over time.
The study found that three-quarters of parents with children under 18 haven’t planned accordingly. And that often results in hefty loans they have to pay back when they graduate.
“Currently 70 per cent of parents know that it’s important to save for their child’s future education,” said Guido Titotto from the Bank of Montreal. “However, only 50 per cent of them are actually investing in an RESP. And only 20 per cent of them are actually taking advantage of the grants that are available to invest in an RESP. So this is where it’s important for us to raise the awareness and advise parents that there are options out there, and great ways of tax-sheltered savings through an RESP, and also taking advantage of the various government grants that are available.”
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