Many Canadian parents are are worried about how their children will be able to afford post-secondary education, a recent poll from BMO Financial Group finds.

Forty-two per cent of Canadian parents that responded to the BMO survey say are not confident that their children will be able to afford a post-secondary education including tuition, room and board, books and spending money.

Post-secondary costs have been increasing steadily over the past decade, with a four-year university degree currently costing upwards of $60,000. That sum could rise to more than $140,000 for a child born this year.

According to the study’s key findings:

  • the majority (83%) of parents anticipate that they will pay for their child’s post-secondary education, while 44% say their child will pay for at least some of it themselves;
  • almost one-quarter (22%) have not spoken to anyone about their child’s post-secondary education, including how it will be funded; and
  • more than one-third (35%) of Canadian parents are not aware of key benefits of the Registered Education Savings Plan (RESP), including the federal government’s contribution matching program.

One way for parents to plan for their child’s post-secondary education is to open a Registered Education Savings Plan (RESP) and make regular contributions. Government grants and compounded interest can add significantly to total savings.

For example, by contributing at least $2,500 to an RESP annually, contributors are eligible for a 20% Canada Education Savings Grant. The grant can be as much as $500 per year depending on the contribution.

“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.

“Taking advantage of the RESP government matching program is a great way to grow your child’s education fund. After all, if you can get free money from the government to send your child to school, why not take advantage of it?”

The survey was fielded online by Pollara between August 17 and 24, 2012, with a sample of 801 Canadian parents with children under 18. A probability sample of this size would yield results accurate to ± 3.5%, 19 times out of 20.