4 Tips for Financing Your Child's Education in Canada

If you are a parent, you will need to consider the fact that your child deserves quality education as they develop into adulthood. The same is also true when they are preparing for college. Canada has one of the world's strongest and most well-funded educational systems in the world so there's a good chance your child will succeed in whatever field they picked, whether it’s working as a registered nurse or a software engineer. 

Higher education in Canada is still expensive even though it's more affordable compared to other countries. On average, Canadians spend around $6,463 per year for a Bachelor's degree while international students pay around $25,000 per year. While lower than the cost of an undergraduate degree in the United States, many Canadians will still need to prepare for the long-term costs of a college education. It pays to plan early, so before your child starts their college education, here are a few things to consider:

1. Get an RESP account

You can also sign up for an account under the Registered Education Savings Plan (RESP) program. This specifically caters to Canadian families that want to finance their child's college education. An RESP can help grow your money tax-free and consists of grants from the federal and provincial government. RESPs also give families flexibility since anyone can open an account and make contributions throughout a 36-year period. It's only a matter of choosing an educational savings company like CST Spark that makes the process easier for many struggling families. 

2. Create a TFSA account

One of the best programs Canadians can use to save and grow their money is a tax-free savings account or TFSA. Started in 2009, this program allows Canadians to save money tax-free throughout their lifetime. You can make contributions to or earn income through your TFSA tax-free. You can also withdraw and use your money for anything, including adding to your child's college costs. 

3. Get a scholarship

Students that excel in their academics can qualify for undergraduate scholarships such as the Loran Award. This scholarship awards around $100,000 per year to 36 deserving students in the country. The selection process is competitive, but with over 25 partner universities and many other perks, Loran scholars are guaranteed quality and almost cost-free education. You can also check the scholarship programs offered by the universities your child prefers. 

4. Tap into provincial savings plans

Apart from the federal government, you should also look towards your local government for investment plansand savings programs that allow you to add more money to your child's RESP. In Montreal, for instance, you can apply for a Québec Education Savings Incentive that lets you gain a refundable tax credit. Paid directly to your RESP, your child can use the amount to pay for tuition, food, transportation, and other college expenses.

Securing a child's future is a critical part of being a parent. Fortunately, Canada offers several ways to help prepare your child for the next phase in life without putting a financial burden.