Almost two-thirds of Canadians believe the cost of a post-secondary education is too expensive, and only 21% of parents with children under the age of 18 feel confident they would be able to pay off the $60,000 cost of a four-year program at a Canadian university.
Those sobering figures are among the results of a national survey released Thursday by Bank of Montreal (TSX: BMO).
The survey, conducted for BMO by Leger Marketing, also examines the confidence level of students in relation to education costs. Three-fifths of students aged 18 to 24 share similar concerns as their parents, with 28% believing they will struggle to pay off post-secondary costs and 32% expecting to be in debt for years to come.
“With the total cost of education increasing every year, the most reliable way to maximize savings for a child’s education is through RESPs,” says David Sharone, manager, registered products, BMO Financial Group.
RESPs benefit from the Canada Education Savings Grant, and they allow for tax-sheltered growth, but many Canadian parents aren’t getting the message.
The survey found that only 52% of Canadian parents with children under 18 have contributed to an RESP. Of those parents who are not investing in an RESP, 50% do not contribute because they say they cannot afford it. A further 16% say they are either unfamiliar with RESPs or do not have time to set one up.
Despite the benefits of RESPs, one quarter (24%) of Canadian parents with children under 18 are relying on a savings account to fund for post-secondary education costs.
The survey was completed with 1,528 Canadian adults and was conducted using Leger Marketing’s Web panel between September 7 to 9.
IE
Canadian parents not getting the message on RESPs: survey
Many parents are unfamiliar with RESPs or believe they can’t afford them
- By: IE Staff
- September 23, 2010 October 31, 2019
- 09:17