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Parents need to save for their children’s education

Parents need to save for their children’s education

September 13, 2018

Parents… it’s time to get serious about your children’s education.

September is back to school month and probably the time of year parents focus the most on education. Summer vacation abruptly comes to a close and children are launched into their next academic year.

Most Canadians take great pride in education and see the advantages of their children being well-qualified before starting a career. And for good reason.

We are in the information age and surrounded by ever changing technology. Most careers, in many occupations, require significant training.

For most young adults, just finishing high school is not nearly enough.

The finish line for education has moved from achieving a high school diploma to having a strong post-secondary education.

For those who go the academic route a bachelor’s degree should be considered a minimum.

More students are staying at university to complete a masters.

Community colleges offer a wide range of practical career training education. Highly skilled trades such as carpentry, plumbing, electrical techniques or aircraft maintenance, all require specific courses and specialized knowledge.

Parents encourage their children to take their studies seriously. Pay attention in class, complete their homework, and study for exams.

Parents are encouraged to turn their attention to the financial realities of post-secondary education. In Canada free education stops after high school. Education can be very expensive.

University is the most expensive and can easily cost $20,000 to $25,000, or more, per year. Most degrees are four years so, for the sake of round numbers, let’s say the cost is $100,000.

Many families have more than one child who plans on continuing their education. So, you can see how this is an extremely expensive proposition.

Financial leadership and planning are the responsibility of the parent. That doesn’t mean the child isn’t responsible for some of the costs.

Do you have children? Do you hope they are able to continue their education after high school?

Time to get serious about how that education will be paid for.

Have you established an educational savings plan?