Knowledge First Financial looks ahead — what will post-secondary education cost in Canada in 2034?
Gone are the days when a student could save enough money working during the summer to pay for school. That’s why Knowledge First Financial pays close attention to what the costs will be in the future — to help parents set an education savings goal and be prepared for that first day of university, college or trade school.
According to Knowledge First Financial, a child going to first year of university in 2034 could pay as much as $27,000, or more than $110,000 for a four-year program. The actual university cost in 2015/2016 was approximately $19,500 for students in residence, and $10,000 for students who lived at home. While the types of programs and schools give students many options for continuing after high school, the undeniable bottom line is — education is expensive and requires planning.
If the cost of education isn’t enough, here are three other reasons why post-secondary schooling is worth saving for:
• It’s a requirement in a competitive job market. More than half of Canadian adults aged 26 to 65 have completed post-secondary education. This is one of the highest rates amongst developed countries.
• Economic growth and replacement needs are expected to create 5.95 million job openings between 2015 and 2024. Two-thirds of these positions require college, university or vocational education.
• Approximately half of students graduating in 2015 reported having education-related debt, owing on average $26,800. 60% of those with debt rely on parents, family or spouse for financial support.
According to the latest report from the Canada Education Savings Program, approximately 50% of eligible parents have yet to take advantage of the government grant which could add up to $7,200 for each child. By starting now, you’ll receive the education grants sooner and your savings will have more time to grow. Learn more about why an RESP is a smart way to invest a child’s future by speaking to a Knowledge First Financial sales representative today.
About Knowledge First Financial Inc.
Knowledge First Financial Inc. is a wholly owned subsidiary of the Knowledge First Foundation and is the investment fund manager, administrator and distributor of the education savings plans offered by Knowledge First Foundation. For more information about education savings plans from Knowledge First Financial Inc., please visit knowledgefirstfinancial.ca or refer to our prospectus.
As of April 30, 2016, Knowledge First Financial manages $3.62 billion in assets on behalf of more than 250,000 customers.
Knowledge First Financial® is a registered trademark of Knowledge First Financial Inc.