Practical ways to save for college

Depending upon where you live, the school you choose, and whether you’re choosing to attend a college or a university, undergraduate tuition fees can cost anywhere from $24001 to $64002 per year in Canada and $5000 to $50,000 per year in the US3. And that doesn’t include books and supplies, transportation, food, or residence fees.

Education is invaluable, but it’s certainly an expensive proposition.

If you’re a young couple just starting out, one of the best things you can do is to start saving for your children’s education when they are small, because it gives you 17 or 18 years to save for the day they head off to college.

In Canada, you can set up a Registered Education Savings Account (RESP) for your child. A similar tax-advantaged investment account product in the US, called a 529 plan, also allows you to do the same.

It can be tricky to know exactly how much you need to save—it’s a moving target since it’s difficult to guess what tuition will cost in 18 years—but every little bit you’re able to put away makes a difference. The Ontario Securities Commission has a RESP savings calculator to help you get an idea of what you may need to save each year.

It may be impossible to save everything you need using tax-advantaged savings vehicles like RESPs and 529 plans, so don’t stop there! Within a year of college or university, students should be scouring the internet for every available scholarship and grant opportunity available—and applying for as many as possible. After all, whatever a student can save or earn means there’s less of a financial burden on mom and dad!

We are proud to contribute to the success that education can bring to individuals, families, and communities.

Every year Foresters Financial awards 250 renewable tuition scholarships worth $2,000 each to young leaders who are committed to helping their communities through volunteering.

The scholarships are available to eligible students pursuing post-secondary education at an accredited university, college, or trade program. Visit Foresters.com for more information, including eligibility requirements and application deadlines.

For more information about education savings vehicles and ways to fund post-secondary education, visit Investopedia.

SOURCES

1 https://www.ontariocolleges.ca/en/colleges/paying-for-college

2 https://www.topuniversities.com/student-info/student-finance/how-much-does-it-cost-study-canada

3 https://www.timeshighereducation.com/student/advice/cost-studying-university-united-states

417957C CAN/US 08/20

Foresters Competitive Scholarship Program is administered by International Scholarship and Tuition Services, Inc.

The scholarship is available to eligible members. For eligibility criteria, please visit https://www.foresters.com/en/foresters-difference/scholarships