It’s Education Savings Week. A perfect opportunity to learn more about Registered Education Savings Plans (RESPs), available government grants, and what is top of mind for Canadian parents. The good news, more and more parents are looking to take advantage of government grants but there is room for improvement. Here’s what we know about trends and motivation for parents with young children and their post-secondary education goals.
According to a recent Ipsos survey
, paying down debt and saving for retirement tied as the top financial priorities for Canadian parents. Following closely behind in second place – saving for post-secondary education for their children. When we break the numbers down a bit further we find that for parents with children under 14 the numbers look a little different with saving for post-secondary education taking the top spot!
92% of parents with children under 14 said saving for post-secondary education is their top financial priority.
"Education costs are going in one direction; up. If parents can make room in their budgets today to start saving for their child's future education, it will lighten the financial load for the entire family when it's time to register the child in a post-secondary program," says Lesley-Anne Scorgie, personal finance expert and bestselling author. In fact, 66% of the parents surveyed with kids between 14-22 said they regret not saving a little more each month and starting to save sooner.
The good news, today’s parents with young children (age 0-13) are taking action. They are more aware of and motivated by government grants to help fund their children’s post-secondary education. In fact, 39% of the parents surveyed with young children said the grants encouraged them to save earlier and 1 in 4 said the grants encouraged them to save more. These parents know that contributing early and often is the best action they can take to prepare for the rising costs of post-secondary education
Government grants motivate parents with children under 14 to start saving earlier (39%) and to save more (28%).
There is always money going out the door. From competing financial priorities to expenses and taxes but government grants offer an opportunity to put more into your pocket – well, your child’s “education savings pocket.” With that kind of an incentive, it is no wonder one third of families with young children claim that federal and provincial grants increased the likeliness of savings for post-secondary education. But what do parents look for in government grants and Registered Education Savings Plan
(RESP)? Here are their top four requirements for taking advantage of RESPs:
- Easy grant application process (90%)
- Access to federal grants not requiring personal contribution (89%)
- Grants that match personal contribution (88%)
- Guidance and advice from an RESP expert (86%)
Education Savings Week is the perfect time to review and learn about your post-secondary education savings options. Plus, thanks to the magic of compound growth , the interest earned is resulting in greater returns each year. In 2015, participation in the Canadian Education Savings Grant surpassed 50% for the first time since its inception. If you are part of the group who has yet to open an RESP there is no better time than the present. Contact one of our RESP Sales Representatives to learn more