More than two-thirds of Canadians are concerned about the affordability of post-secondary education in Canada, according to a BMO Financial Group study released Friday.

A four-year university degree can currently cost upwards of $60,000, and various sources estimate that a child born in 2011 could encounter education costs of approximately $140,000 when they are ready to enter university.

Despite these numbers, the study, conducted by Leger Marketing, revealed that only half (56%) of Canadians with young children have a Registered Education Savings Plan in place. Of those who do not have an RESP account, or are contributing less than usual, the main reason driving their decision is not having enough money (48%). Forty per cent of respondents contributed the same amount as they did last year

“The great thing about RESPs is that a little really does go a long way,” says Mark Stewart, director, product development & management, BMO Investments Inc. “When you take into account the added benefit of the Canada Education Savings Grant, along with compounded interest over time, even small amounts have an opportunity to grow into significant savings.”

Stewart also reminds parents and grandparents that, aside from making regular contributions, there are plenty of additional opportunities that can be used to grow an RESP, including allocating a portion of cash gifts children receive from relatives and family friends.

According to the study, only 10% of parents whose child has received money as a gift have put the money towards an RESP account, while 27% of parents have put the money in a savings account or have given the child a portion to buy what they wish (29%).

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“In order to prepare yourself for the costs ahead, it is essential to plan early for your child’s education,” says Stewart. “For example, if you contribute $500 per year, from the time your child is born, total savings — including the Canada Education Savings Grant as well as earnings — could exceed $20,000 by the time your child enters a post-secondary institution.”

The online survey was conducted by Leger Marketing among 1504 Canadian adults, between August 15 to 18.