Half of Canadian Parents Aren’t Saving for University

According to TD Canada Trust, only half have started saving.

How much do you think the average Canadian parent saves for their child’s education? You might be surprised.

According to TD Canada Trust, almost half have saved nothing.

According to the TD Canada Trust 2011 Education and Finances Survey, 45 per cent of parents who have children that are eligible to attend college or university have not started saving.

As a result, nearly one-third of those same parents said that they will barely be able to cover 10% of their children’s education bill.

“For university and college students living away from home, the cost of pursuing an undergraduate degree is approximately $80,000, so it’s no surprise parents are struggling to make ends meet,” said Shahz Beig, Associate Vice President, Personal Lending, TD Canada Trust.

The same data also reveals that only 12 per cent of surveyed parents said they plan to pay for 100% of their children’s education. Another 49 per cent said they plan to pay for most of the expenses, but need their children to contribute through summer jobs or scholarships. 32 per cent said they can cover tuition, books and rent but need their children to pay other expenses like transit fees.

“Next to saving for retirement, one of the biggest financial challenges the majority of Canadians will face is saving for their children’s education,” said Beig.