If you think things are difficult financially for you today, how will your children fare in the future?
A 2021 Pew Research Poll conducted found that of 17 countries polled, 64% of parents believe their children will be worse off financially than they are. Canada ranked sixth among the 17 countries, with 68% of parents expressing this fear.
What’s at the root of this worry?
Experts believe parents today are measuring their children’s future success against outdated markers. Until the pandemic, millennial parents believed they were different than their parents. From careers, to education to finance and financial planning, millennial parents today especially thought that when it came to planning for their children’s futures they would be different, however as it turned out they planned for their children’s futures using exactly the same benchmarks.
First came a traditional high school education followed by attending a local university and earning a university degree in some general program, followed by buying their first home and starting a family. The same route their grandparents took and their parents took and the same route they were taking.
Has the world changed in 20 years? Will your child’s education in 2040 be the same as yours in 2010?
Imagine, 20 years ago if you grew Marijuana, you went to jail. Now there are companies paying people to grow Marijuana and there are universities launching programs on how to grow the best Marijuana.
20 years ago if you wanted to become a mechanic you went to a local college to learn how to change oil and fix engines. Now there is Tesla, there are no engines, no oil to change and you attended university or community college or online degree in programming to build the EV.
Education planning is almost a knee jerk reaction to all parents. The very first thing they want to do when they have a child is start planning for their child’s education. However, if you want them to get the best education then you should start with the belief that in 2040 your child’s education will no longer be local or even in person in class. Education is now a multi billion dollar online global industry.
One the most glaring examples is the rise of the online education and degree platforms spreading like wildfire.
In the short time since the launch of Multi Open Online Courses (MOOC) nine years ago, the modern MOOC movement has crossed 180 million student, excluding China and in 2020 alone, online education providers launched over 2,800 new education courses with 19 online degrees and 360 micro-credentials.
According to Classcentral.com the largest aggregator of online Multi Open Online Courses. There are now 180 million students, spanning the globe studying at 950 universities who are offering 16, 300 online courses with 67 MOOC degrees and 1180 micro-credentials.
And before you think the universities are no name, no brand universities, here is a small sample of what your children’s future success and education will look like. Harvard, Princeton, Duke and hundreds of others across the globe and in every subject.
Your child may choose to attend two universities at one time on Metaverse.
According to the Brookings Institute one of the world’s foremost research and consulting firms in a report titled “A whole new world: Education meets the metaverse”
According to the Brookings report “The metaverse is upon us. Soon it will be as omnipresent as TikTok, Instagram, and Facebook (now Meta)”
If you fail to plan, then you plan to fail and it’s your child who will pay the price.
By all means dream big for your child’s future. That’s what you’re supposed to do. But rather than being a sheep and doing what many parents do and simply open an RESP account at the bank, you should ask your advisor hard questions. You are the protector and guardian of your child’s future. Not the bank. If you don’t ask the questions today, it’s your child who may pay the price later while you watch them
The default education plan most Canadian parents do is the RESP – Registered Education Savings Plan. They make it sound so inviting. However while they dangle the carrot of free government money, they know you won’t ask the hard questions like:
- Can my child use their RESP for any program in 2040 or only ones approved by a well paid government bureaucrat in Ottawa?
- Will my child have the flexibility they need to study anything at any place they wish or only what on the approved government RESP designated list of schools?
- Can my child use the money I saved for their future for anything or education purpose only?
- And what happens if the education my child wants to pursue if they don’t qualify to use the RESP? what then?
Thinking outside the box is now more important than ever.
Most importantly, parent should look at the need for flexibility when planning for their children’s future education. As a parent ask yourself these important questions:
- Did you do what your parents thought you would do when you were 18?
- Did your education look like your parents education?
- Do you wish you had more choices and flexibility in selecting your education?
When planning for your children’s future success and education, think of an education savings plan that doesn’t have any restrictions on where they go to school, what they study and how the money you save can be used.
Your children’s future success depends on flexibility and options. If you limit their education options, they will be unhappy and likely be less successful as well in life.
Child Plan is a flexible and secure tax-free savings plan that can be opened by parents and grandparents. With a Child Plan, your child will receive a tax free annual dividend every year for life and they can use their plan for any education program anywhere in the world or online without restrictions, buy their first home, for any financial need in life. Request your personalized Child Plan illustration.