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.