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.
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.
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.