The Learning Experience – For The Kids In Your Life. And You.
education is something almost every parent wants for their child and
with good reason. A Statistics Canada study indicates that 65 percent of
all new jobs require some postsecondary education. In the first half of
the nineties, available employment for students with less than a high
school diploma dropped a full 30 percent, while the number of jobs for
university grads (which pay 45 percent more, on average) jumped by 20
Unfortunately, the way things are going, more than a few
families aren't going to be able to afford it. And many of those that
can are going to be stretched. While this is far from a happy situation,
the impact of missing a higher education can last a lifetime.
is, unless parents, grandparents, or friends take constructive action.
Thankfully, with a comprehensive education plan and an early start,
inadequate finances don't need to make high school the end of the line
for the kids you care about.
actual cost varies with the university chosen, the degree sought and the
discipline selected. The cost of post-secondary education in Canada is
already high and growing at a rapid rate. Cost for tuition, room and
board for a full-time undergraduate university student currently
averages about $12,000 per year. Travelling costs and books are extra. A
four-year degree exceeds $50,000. As more and more students are
pursuing post-graduate studies, the total cost of a university education
What's more, these figures make no allowance for
escalation. With ongoing government cutbacks in educational funding,
escalation of higher learning costs is almost certain to eclipse
inflation for the foreseeable future.
are many ways to fund a higher education. What's right for your
situation depends on many factors, including your net worth, the ages
and number of children involved, and whether or not you want to
surrender the right to take back the principal you have contributed.
can, for example, hope that your child wins a scholarship - or is able
to earn significant amounts through summer and part-time jobs. You can
postpone the issue, in the expectation of writing a cheque or taking out
a loan on the day of enrolment. You can set money aside in a savings or
investment account. Or you can begin investing as part of a formalized
education plan. Your chosen strategy can include a Registered Education
Savings Plan (RESP), which shelters from tax the income on your
investments - and provides access to direct contributions from the
federal government through the Canada Education Savings Grant (CESG).
Alternatively, you can decide to establish a formal trust which may
offer greater flexibility in some areas.
The choice is yours.
However, we do suggest that you think about planning sooner rather than
later and about taking advantage of whatever help is available to
increase both the funds that will be available and the rate at which
they accumulate. From our experience, a dedicated education savings
strategy has proven to offer the greatest assurance that the money will
be there when it's needed.
Sorting It All Out
will the money come from to pay for your child's higher education? By
preparing an education analysis, your BMO Nesbitt Burns Investment
Advisor will help you determine costs and the best way to save for them.
education analysis assesses a number of factors, including the number
of children under consideration and their ages, the number of years of
post-secondary education you anticipate for each, your existing savings
and ability to save, and a possible rate of return for the level of risk
you can comfortably accept. It will also assist your Investment Advisor
in reviewing the suitability of various planning vehicles – from RESPs
to trusts - and the types of investments you can hold within them, from
GICs to mutual funds to stocks and bonds.
Based on our assessment
and recommendations we will help you with the initial implementation
and ongoing monitoring of your education plan.
BMO Nesbitt Burns, we specialize in all aspects of assisting Canadians
to provide for the higher education of a child or children.
From identifying the problem areas, to seizing the right opportunities, we can help at every stage.
most relationships, ours will start with a simple conversation during
which we will jointly assess your particular needs and you can
personally confirm the depth of our resources.
Talk to your BMO Nesbitt Burns Investment Advisor to learn more.
All investment products will be offered through BMO Nesbitt Burns Inc. and, in Quebec, through BMO Nesbitt Burns Ltée.
Quebec, financial planning services will be offered through BMO Nesbitt
Burns Ltée. and through BMO Nesbitt Burns Financial Services Inc.
® "BMO (M-bar roundel symbol)” is a registered trade-mark of Bank ofMontreal, used under licence.
® "Nesbitt Burns” is a registered trade-mark of BMO Nesbitt Burns Corporation Limited.
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