How can I plan for my children's education?

Children are always asked what they want to be when they grow up. Doctor, Lawyer, Astronaut. And as a parent, you want to make sure nothing stands in their way, especially something like finances.

The Cost of Learning
Funding an education savings plan is one of the most valuable gifts you can give a child or grandchild, but unfortunately, it can also be one of the most expensive.

The projected annual cost to attend the average Canadian university for one year (including tuition and room and board) is expected to be more than $24,000 by 2023*.

You're not alone if you think a financial goal like this seems intimidating or out of reach. But with careful planning and early saving, it doesn't have to be.

Your Savings Plan
The first step in creating an education savings plan is to estimate how much money you'll need. To reach this number, you should take into consideration the type of college or university your child may be interested in, your time horizon and, of course, inflation.

Starting early and investing consistently are two key factors to reaching your goal.

This is not to say that the only way to reach your goal is to start saving when your child is a newborn. And we also understand that not everyone is able to save hundreds of dollars a month - but that doesn't mean sending a child to post-secondary school is any less realistic. If your savings won't be able to cover all of your education costs, other family members may be able to help and you can also consider student financial aid, scholarships, grants, loans and other programs.

Your Next Step
We can't stress enough the importance of early planning, but if you haven't started yet, don't panic. Contact your local financial advisor*, who can help you with your savings goals and make sense of the different types of education savings plans that are available. We can also help you explore investment options and see if you might be eligible for financial aid.

*Source: Edward Jones.