The Rising Cost of Tuition and Employment Trends

Children should be able to achieve what they put their minds to. Money should never be a barrier in achieving goals, however, with rising Tuition fees in Canada, it makes it more difficult to access post secondary education. If you look at how tuition fees have grown in Canada, you can see that since 1990, the amounts have tripled! And, among Canadian students, Ontario students are paying the most. In 1990, fees in current dollars were $1,464. However, this past academic year, the average was $6,348. In 2016, they are expected to rise to $7,437! If you factor in inflation, the amount really is $8,756! (Canadian Centre for Policy Alternatives).

Furthermore, with the current job trends, a post-secondary education is a ticket to employment. The Association of Universities and Colleges Canada estimates that in coming years, 75% of new jobs will require post-secondary education. Post secondary graduates are proven to earn much higher incomes and experience more stable employment than those lacking a post-secondary education over their lifetimes.

That is why creating a nest for children's education is important. In Canada, you can invest in your children by creating a RESP ( Registered Education Savings Plan). A RESP really is a special savings plan. It's like a regular savings account, but it is tax-free and aimed at saving for your child's education. Through this, you contribute a certain amount each month, the Government provides additional funding to help this amount grow, and before you know it, when you child is ready for post secondary education (CEGEP, trade school, college or university), they are able to afford it. When you have an RESP set-up for your child, the Canadian Government provides additional money through other grants, like the Canadian Education Savings Grant, the Canada Learning Bond and provincial savings programs. However, these free grants are eligible only for those with existing RESPs. Therefore, setting up an RESP and making a contribution to it can really help your child's education fund grow.

Funding Children’s Education Resulting in Delayed Retirement

According to a recent CIBC Poll, conducted in June of this year, many Canadian parents are delaying retirement in order to be able to pay for their children’s education. Of all Canadians, Ontario parents are the ones most likely to put off retirement to fund their children’s post-secondary education, with 40% of parents with kids under 25 saying they have to put off retirement. 20% of those parents expect to delay retirement for at least another 5 years!  

In addition, many are also taking on loans and using up the retirement savings in order to help pay for tuition and other expenses. The conservative cost of raising a child is average at 5000 a year, when you factor in daycare, tuition, and other costs, this amount can be increased to 10,000 a year. When you have more than one child, this amount only increases.

This is why planning ahead, using a financial advisor, and setting up an RESP can help secure that enough funds will be ready when your child is ready to go to post-secondary. Delaying retirement may be a necessity for some families, but it does not have to be. Be smart, plan ahead and retire when you’re ready to.

How Health Insurance Works

When buying a health insurance plan, buy one that works for you. Often times though, insurance can be confusing. So we’ve decided to break it down for you.

In Canada, basic health care is covered by provincial plans, though provincial plans, like OHIP for instance. This covers your visits to the doctors, specialists, hospital acute care, diagnostic services (x-rays, blood tests), etc. Services you may need outside this core protection is paid out of pocket, or can be shared through having an extended health care pan. For some people, they are provided coverage for an extended health plan through work, for others who are not covered through work, when an expense does arise; they are responsible to pay out of pocket.

For those individuals, having an extended health plan can pay the following (coverage differs based on plan and price):

• Dental Care (cleanings, fillings, extractions, etc.)
• Hospital Accommodation (semi-private and private rooms)
• Medical Equipment (casts, crutches, wheelchairs, etc.)
• Prescription Drugs (medication prescribed by doctors)
• Private Duty Nursing (home care nurse, special nursing needs)
• Registered Therapists and Health Practitioners (physiotherapy, chiropractic services, orthotics etc.)
• Vision Care (eye exams, glasses, contacts)

When you purchase a plan, you are protected for these services (depending on your plan coverage). Looking at this list, it becomes clearer that extended health care really covers a lot of things that are needed to maintain a healthy lifestyle. When you purchase a plan, you pay a premium that offers you this protection in the event that it is required. Your medical providers will them submit those claims on your behalf, and will cover these expenses. It’s always good to choose a plan that offers you the greatest protection of services you may need. Speaking to an insurance agent will help you figure out which plan works for you, and make it work for you.