College and university students have a few weeks of left of freedom, otherwise known as grinding it out at less than glamorous summer jobs to pay for school.
But, how many students earn enough to pay for school and living expenses? If they don’t earn enough, can you afford to supplement or pay the costs? Let’s have a look at the hard numbers.
A study from the Canadian Imperial Bank of Commerce found:
- 65% of university and college students have a summer job this year while another 20% have been looking.
- 26% will earn between $5,000 and $10,000 this summer.
53% of students expect to earn between $1,001 and $5,000 this summer.
The Canadian Centre for Policy Alternatives said the average Canadian undergraduate was expected to pay $6,610 in tuition this year and that figure will grow to $7,437 in 2016-2017. This does not reflect the costs of books, living expenses, transportation, entertainment, etc. A Toronto-Dominion Bank study forecasts a 4-year degree to cost $137,000 by 2027.
Given the cost of education for a child born today in Canada is expected to rise to over $100,000 by the time they start University, will you be able to contribute to their education costs if they don’t earn enough summer time income to pay their way through University?
While every Canadian knows of the RESP and the matching Education Savings Grant. Many parents don’t know or ask if there is a limit as to how much the Government will give them to help save for their kids future education. The lifetime limit of the Canada Education Savings Grant given to you per child is $7,200 today if you contribute $36,000. Since 1998 the government has only increased the annual by $100 per year of contribution. Do parents believe that given the cost of education rising to over $100,000 when their children start University in 18 years the government of Canada will increase their CESG grant to over $20,000?
It’s never too early to plan for your child’s education. For the cost of two lattes a day you can ensure that your kids have over $76,000 towards a college or university education. Child Plan for Education from insuranceforchildren.ca can be used to pay for any University or skills based education program worldwide; not only those approved by the government of Canada. It can be used even if your child doesn’t pursue post secondary education to pay for life like buying their first house, start a business, or as a source of additional income when they have a family . If you have young children or children on the way, contact a Family Advisor Insurance for Children today.