The privilege of learning – For children you care about and for you.
university education is something most parents want, with good reason,
for their children. According to a Statistics Canada study, 65% of new
jobs require post-secondary education. In the first half of the 90s,
the number of jobs accessible to people who had not finished secondary
studies fell by 30%, while those reserved for university graduates
(paying 45% more on average) rose by 20%.
current pace of change, many families will be unable to afford this
opportunity. And many others will succeed only with great difficulty.
This is not a gratifying situation, but then those without
post-secondary studies are likely to pay for it their whole life.
parents, grandparents or friends take constructive steps. Fortunately,
by establishing a complete education plan early on, even with limited
amounts of money, the child you love will not be obliged to stop their
education with high school.
The exact cost varies by university,
degree sought and subject studied. The cost of post-secondary studies,
already high in Canada, is rising quickly. On average, tuition, room
and board for a full-time undergraduate university student currently run
about $12,000 per year. Transportation and books are additional. The
cost of a four-year degree is thus more than $50,000, and while the
number of students pursuing graduate studies is tending to increase, the
total cost of university education is going up
On top of that,
these numbers are not indexed. With governments continuing to reduce
their share of educational funding, it is virtually certain that the
increase in the cost of post-secondary education will exceed inflation
in the foreseeable future.
are many ways to fund advanced education. The way that suits you
depends on a number of factors, including your net capital, the age and
number of children concerned, and whether you want to waive the right to
reclaim the money you spent.
You can, for example, hope that
your child will obtain a scholarship or will be able to earn enough
money from seasonal or part-time jobs. You can defer the problem and
decide to write a cheque or get a loan on registration day. You can put
money aside in a savings or investment account or start to invest in an
official education program. Your strategy can use a registered
education savings plan (RESP), in which your investments grow sheltered
from tax – and in which the federal government contributes directly by
the Canadian Education Savings Grant (CESG). You can also opt for a
formal trust, which offers greater flexibility in certain respects.
choice is yours. However, we strongly advise you to act as soon as
possible – and take advantage of all the assistance offered to you to
increase the funds that will be available and the rate at which they
accumulate. Our experience brings us to think that the adoption of a
strategy of education savings represents the best guarantee that the
funds will be available when you need them.
To help you,
So where will the money to pay for your child’s university studies come from?
preparing a personalized analysis, your BMO Nesbitt Burns investment
advisor will help you estimate the costs and determine the best way to
save in order to meet them.
The customized analysis evaluates a
number of factors, such as the number of children concerned and their
age, the number of years of post-secondary studies you expect for each
of them, your current savings and your ability to save as well as the
possible rate of return, given the level of risk you can comfortably
tolerate. This analysis will also help your investment advisor review
the relevance of various planning instruments, ranging from RESPs to
trusts and the various kinds of investments you hold in them (GICs,
mutual funds, equities or bonds).
Our analysis and our recommendations will enable us to help you set up your program and keep track of it.
BMO Nesbitt Burns, we are financial experts. Most of all, became
masters of the art of helping Canadians, at every level, give their
children post-secondary education.
We can help you at every
step of the way, whether it is to identify the problems at hand or by
seizing the best opportunities as they arise.
relationships, ours will begin with a simple conversation during which
we will evaluate all your personal needs. You will then be able to
personally verify the extent of our resources and determine how there
could be a match.
Call us today to discuss about your goals and determine how we can help you reach them.