As we’ve blogged on several occasions – Why is There So Much Student Debt?, There is No Escape From Student Loans,
Are Student Loans the Only Way to Pay for Your Child’s Education? – student debt is a serious problem, and one that continues to worsen. It impacts every fabric of our society and may seriously wipe out your retirement income. In a recent CIBC survey approximately:
- 33% of parents will delay retirement because of costs related to paying for their children’s university education.
- 33% of parents will take on personal debt to help their kids avoid having to do so.
Parents are definitely making sacrifices for their children’s educations. A couple who participated in the CIBC survey reported that they partially funded tuition and living costs for their three kids. As a result they paid approximately $200,000 and had to assume a lot more debt and give up things like a second car. But, they sacrificed so that their children would graduate from university with a great advantage.
Many parents jeopardize their retirement savings by co-signing student loans. If your child can’t keep up the loan repayments the parent(s) who co-signed must assume the payments, and that can hurt you financially. Parents shouldn’t have to sacrifice their retirement in order to pay for their child’s education, nor should students have to graduate with staggering debt that will seriously impact their adult lives and hamper them from moving forward with important milestones. Do we let our children struggle or forgo a university education? Or do we spend our last cent to pay for their educations and struggle financially in our retirement years?
There is a solution, and it’s a simple one called Child Plan. It’s a safe long term savings and investment product that will pay for any education program worldwide; not only those approved by the government. And, it can be used even if your child doesn’t pursue post secondary education to buy a house, start a business, or as a source of income. Contact us today to find out how to give your children a great advantage in life without sacrificing your retirement. It pays for life.