Ask the Financial Planning, Insurance & Investments Expert – Christine Conway CFP, CHS
SAVE YOUR KIDS FROM STARTING OUT IN DEBT
Post-secondary education is becoming increasingly necessary to earn a wage that allows us to reach our financial goals such as owning a home and saving for retirement. With cost of living on the rise, these challenges will become an even bigger hurdle for our kids.
According to the Canadian Federation of Students, between 1990 and 2014 tuition fees as a national average have increased over 155%, adjusted for inflation.
In fact, after completing a four year degree, graduates across Canada in 2014 with student loans found themselves with an average student debt of $27,000. In Vancouver, the average student loan debt for that same degree was $35,000.
While our kids are still young, we have a chance to help them get a head start. With an RESP, the government contributes an additional 20% to your contribution through the Canada Education Savings Grant. The lifetime maximum for this grant is $7,200 per child and the money must be used towards obtaining that post-secondary education. There are additional grants available for families with lower income.
If you want to help give your child a head start and begin to secure their financial future, give us a call at 604-521-3778 or send me an email at firstname.lastname@example.org. We’re always happy to help.