BMO Says Parents Are Worried About Saving for College or University

With tuition prices rising across Canada, more and more parents are worried about saving for education. BMO says more than 40 per cent, actually.

According to a study by the BMO Financial Group, 42 per cent of Canadian parents said they aren’t confident that their children will be able to pay for college or university.

They are also factoring in paying for room and board, books and spending money, on top of the tuition costs.

“Parents should educate themselves on the various options available to help them save for their children’s post-secondary education,” said Robert Armstrong, Vice President, Managed Solutions and Registered Plans Strategy, BMO Investments Inc.

The study also revealed that:

• 83 per cent of parents anticipate that they will pay for their child’s post-secondary education
• 44 per cent say their child will pay for at least some of it themselves.
• 22 per cent have not spoken to anyone about their child’s post-secondary education, including how it will be funded.
• 35 per cent of Canadian parents are not aware of key benefits of the Registered Education Savings Plan

BMO advises that parents, children and grandparents lighten the tuition load by contributing to an RESP. They say contributing as little as $500 per year from early in a child’s life could result in more than $20,000 in savings by the time the child enters college or university.