It is very important that from now one begins to do a systematic and programmed saving, for when it is the moment of their son or daughter to go to University, one has economic availability.
Within the plans that a father has for his children it is usually the case that they go to College or University, and for this it is important to have money, in Canada primary and secondary education is free , but for advanced studies each father or young person must pay the institution where they choose to study.
According to Canada Statistics, the cost average of university education for the academic year 2003/2004 was of $4.025 ** nearly three times the cost at the beginning of the 90's.
Are you ready financially for when your son or daughter enters university? In the following table are the projected total costs for a career of four years for a boy born in 2004 who will attend a university far from his house in 2022.
Detailed Expenses |
Costs Today |
Costs in 2022 |
Education |
$16,100 ( average for a university career of four years) |
$64,336, assuming increase of costs of an annual 8% |
Books and equipment (the students in specialized university courses will require additional bottoms for the purchase of books, instruments and equipment) |
$1,000 per year or $4.000 based on a career of four years *** |
$6,809,
, assuming increase of costs of annual 3%
|
Obligatory additional honoraria for training material, sport activities and of recreation, and membership to the advice of students |
$2,492
(average based on a career of four years) * *
|
$4,242,
, assuming increase of costs of annual 3%
|
Lodging and feeding |
$5,250
(average) per year or $21.000 based on a career of four years ***
|
$35,750,
assuming increase of costs of annual 3%
|
Public services, telephone |
$3,000
per year or $12.000 based on a career of four years ***
|
$20,429,
assuming increase of costs of annual 3%
|
Transportation |
$1,200
per year or $4.800 based on a career of four years ***
|
$8172,
assuming increase of costs of annual 3%
|
Total costs (approx.) |
$60,392 |
$139,738 |
** The Daily, Statistics Canada, August 2003, Catalogue 11-001-XIE
*** Canada Education Saving Grants are provided by Human Resource Development Canada
**** Ontario Government, Ministry of Education, Ministry of Training, Colleges and Universities. Website, www.edu.gov.on.ca, June 3, 04
When you consider these and the other costs of a university equation, such as the necessity to buy a computer and software, and perhaps the desire to buy a car, it is easy to observe why education will be more expensive.
Fortunately, a way exists to comply financially with the future costs of education. Registered Education Savings Plan (RESP).
With a RESP parents or grandparents can save to the name of the children and the government contributes 20% to the amount and in addition that money also generates interest.
These savings and gains are duty free until the children begin to use these savings for advanced education, as the children typically have low wages there is no tax.
To begin to save when the children are born is the best thing. If a father thinks that the solution for studies is a loan, according to press information, a low percentage obtain loans.
Canada Education Saving Grant
From January 1, 1998 the Federal Government has offered Canada Education Saving Grant (CESG OR The Grant) to parents or the interested one in saving through the RESP.
Grant is calculated at 20% up to $2.000 annually until 18 years. The high for the year is $400 per child and to a maximum of $7.200 per child.
In 2004 the Federal Government made several contributions to fortify the possibility of saving for all families, one of the new changes is Canada Learning Bond (CLB) for the children of families with low wages.
This is for children born after January 1, 2004. In addition, for the families with low and average wages they can obtain a Grant of 30% or 40% depending on the annual income.
Really this is a plan of systematic and programmed saving, with excellent interests.
Education tomorrow will be expensive. Be prepared by saving from now on.
Contact me at info@lumarojas.com or on the web.
Invest in your children and make their UNIVERSITY STUDIES become reality!
Not all companies that offer RESP are equal.
I hope to be with you soon in order for you to not lose this excellent opportunity
Luma Rojas.
Enrolment Representative
|
