PLANNING FOR POST SECONDARY EDUCATION
The cost of a post-secondary education in the Greater Toronto Area (GTA) and the rest of Ontario is rising fast. In fact, Ontario is home to the highest annual undergraduate tuition in the country at $7,868.
This doesn’t include books, student fees, housing, or food. That’s why it’s important to start saving for your child’s post-secondary education. And the sooner the better.
In Canada we have many great options for funding student’s education. There are Registered Education Savings Plans (RESPs) for children, free Government money to fund RESPs, RRSP LifeLong Learning Plans for adults and scholarships and bursaries for students.
A Whole Life Insurance Policy ( Insurance + Cash Value) can also be used as an Educational Planning solution. The Cash Value grows as the plan matures and can be accessed in a tax advantaged way by student for educational needs. The advantage of this solution is that Cash Value grows to be accessed as many times as possible for various other needs such as down payment for mortgage, buy first car, wedding etc, and child is insured for Life. The Life Insurance will be passed on to heirs of the child thereby creating generational wealth.
As soon as your child is born, you can apply for the Canada Child Tax Benefit. This is free money that the government gives to all parents of children under 18 (you can click here to figure out how much you are suppose to receive). You can use this money in any way you like, but if you are a new parent, a great idea is to put this money aside in a RESP for your child’s education.
To maximize the money you are saving for your child’s future, encourage your child to get good grades. Good grades can be more important than most people think. They can subsidize your child’s education. Good grades can enable a student to pay for much of his or her education with scholarships and bursaries. Encouraging your child to pursue scholarships and bursaries can save you a lot of money.
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