HSBC recently sponsored a global survey – The Value of Education: Springboard for Success. Parents were asked what their priorities were in allocating money to help their child financially in life.
- 54% said the money would ideally go to education
- 8% said the money would go to building funds for long term investment
- 7% said the money would go for a down payment on a house
This same survey shows that 82% of parents aspire to have their children attend university, and it suggests that more than half of parents believe that paying for a child’s education is the best investment you can make. The question now is how are parents saving for their child’s education? If you look at the federal government’s statistics you may be under the impression that RESPs are helping students significantly with post secondary education costs.
- $35.6 billion invested in RESPs in 2012
- Annual contributions tend to be in the $3.6-billion range
However, an Yconic/Abacus Data Survey of Canadian Millennials which was conducted for The Globe and Mail earlier this year looked at the role that RESP savings played in helping students afford post secondary costs and this survey tells a very different story. Asked if their parents used money saved in an RESP to help pay for college or university:
- 33% said yes
- 46% said no
- The rest either preferred not to say or didn’t know
The same survey asked what proportion of their post secondary costs was paid by RESPs:
- 60% said zero
- 8% said RESPs covered no more than 1/4 of the total bill
There is a way for parents to save for their child’s education, build funds for long term investment and help their child with a down payment on a house. Insurance for Children has created Child Plan Education Achiever, enabling parents to create a solid financial future for their child. For the price of 2 lattes a day you can have a $76,000 education fund for your child. In the event that your child doesn’t pursue post secondary education this safe and reliable long term investment can be used to buy a house, start a business, or as a source of income. It is totally flexible. Contact us today and we will show you how you can help your child follow their dreams and achieve their goals in life.