When I sit and consider the costs of education now a days, I am gob smacked at the high costs. I personally didn’t pursue college/university. Do I regret it? Nah! I would of only went to it for the fun aspect and wasted my parents money for me to get an education I’d never use. My children however, will most likely need that kind of education when they hit that point with how the world is changing. Degrees used to not really matter, but now a days it does.
I may have worked in my career field for 7 years now, but because I don’t have that fancy degree it is rare I actually get the job. Very rare. I want to avoid this with my kids.
As of recent, I’ve been really considering their futures and how I can make sure they can pursue higher education without the financial worries. There are a lot of options up in Canada for their education and ways I can turn a few hundred into more.
Saving for Your Child’s Education Costs
There are a lot of ways you can save for your child’s education. So many ways. You know that $1.60 coffee you buy once a day, that adds up fast. If you were to buy a coffee every single day for an entire year that is $584. HOLY CRAP! Now, times that by 17 years of life… you are reaching almost $10k. Hello?! And that is just by saving a coffee a day, from the day they are born until they are headed to school.
In Canada, there is the option to put this money into an RESP fund. You receive free money from the government! The Canada Education Savings Grant will match up to 20% on the first $2,500 contributed annually. That could mean up to $500 a year, up to a lifetime maximum of $7,200! With advice from RBC, it’s easy to start. No need to be overwhelmed. You have the flexibility to use the RESP for university, college, apprenticeship, non-credit courses etc., and if your child doesn’t use the funds, you can use your contributions and earnings to fund your RRSP! Yes, that means you won’t lose all that hard earned cash. So if you figure you put in $584 a year, 20% additional on that each year, you’ll be even further over $10k.
Got two kids, make your spouse also cut out a coffee a day and put into an RESP. It does add up real fast. There are many ways to save for a child’s education – with gifts from relatives and friends or a weekly contribution of $25.
You can find more great tips on saving for your child’s education here:
“Disclosure: I am part of the RBC RESP blogger program with Mom Central Canada and I receive special perks as part of my affiliation with this group. The opinions on this blog are my own.”