Saving for your child’s education can feel overwhelming, especially at a time when tuition is on the rise. In today’s economy, receiving a post-secondary education is important to building a strong career. While the costs associated with higher education can be burdensome, there are some simple measures families can implement to set money aside for their child.
Let’s explore.
Financial Aid:
Applying for financial aid can help cover the costs of tuition, but keep in mind, financial aid must be paid back after graduation. Once your child secures employment, the money can be paid back in monthly installments. Look for guidance from university financial aid assistants who can walk you through the process and find the best possible plan that meets your students’ needs.
Any savings is helpful:
Saving money, even if it’s only a small amount, is one of the best ways to get started. At the end of each month, put a few dollars to the side in an envelope marked “tuition” and only use it when the time comes. You’ll be surprised how much a few extra dollars adds up over the years. This money can be used toward purchasing books, rent, meal plans, and other related expenses. Start saving now, no matter how small and how often you can do it.
Opening a bank savings account:
Opening a savings account for your child is another way to help them foot the cost of education in the future. Not only will the money they save earn interest from the bank, it will also teach your child about financial responsibility. Show them how to save their birthday money, or when they get older, employment paychecks in the bank. Many Canadian banks offer good interest rates and other incentives that you can use to your advantage.
Open an RESP:
In Canada, opening a Registered Education Savings Plan or RESP offered by providers like Children’s Education Funds Inc. (CEFI) is one of the best things to do when you want to save for your child’s post-secondary education. CEFI offers 3 different types of plans to choose from, depending on your financial situation. You can start setting money aside as soon as your child is born, so that over time, the funds will grow.
Earn extra money on the side:
Considering you have the time, it may benefit your child if you earn money on the side through a part-time job. Perhaps you enjoy children and can babysit or you are good at bookkeeping and can help a small business with this task. One thing is for certain, any amount of money will help your child afford the future that they deserve.