Post-secondary education costs will continue to climb. In fact, the average cost of an undergraduate degree for kids living away from home in 2031 is expected to be $150,000, finds a TD survey.
So parents should start saving for their child’s education sooner than later.
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However, it can be hard to balance this financial priority with monthly bill payments, extracurricular activities, vacations and investing for retirement. TD finds 29% of parents with children under the age of 18 aren’t saving.
Additional findings include:
- 41% of parents say saving for their own retirement impacts their ability to save for their child’s education; and
- 50% of parents cite costs associated with raising their children — like daycare, vacations, sports and extracurricular activities — are impacting saving.
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There are steps parents can take to save for their child’s post-secondary education, says TD’s Kathryn Delgreco. This includes:
- save early, regularly — contribute small amounts regularly to an RESP or TFSA;
- consider eligible grants; and
- build a plan.
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