Welcome!

News Feed Item

CIBC Poll: Disconnect between Canadian parents and their kids on who will pay for their post-secondary education

Parents are willing to pay for majority of their children's college or university costs, expected to be around $64,000 per child, but their kids think they are only covering a third of the tab

TORONTO, Aug. 25, 2014 /CNW/ - Two new polls from CIBC (TSX: CM) (NYSE: CM) show that Canadian parents and their kids are on different pages when it comes to financing post-secondary education.

Parents, on average, are willing to pay for two-thirds of their children's post-secondary education and some are planning to pick up the full tab. Their kids, however, think their parents are only paying for a third of their costs. The good news for parents is that 41 per cent of their children think even that is too much and say their parents should contribute 25 per cent or less.

Key poll findings include:  

Parents Students
  • Are willing to pay for 67 per cent of their children's education costs, similar to last year's 66 per cent
  • Say their parents will pay 33 per cent on average towards school expenses for the upcoming school year
  • Of those paying for their child's education, 21 per cent say they will pay the entire cost 
  • Plan to pay 33 per cent of their tuition and school expenses for the upcoming school year
  • On average, parents expect the entire cost of each child's post-secondary education to be $64,300
  • 41 per cent say their parents should pay no more than a quarter (25 per cent) of their education costs
  • Nearly half of parents (48 per cent) expect education costs to be greater than $50,000
  • 40 per cent expect to have more than $25,000 in student debt

"Parents and students need to understand the cost realities of post-secondary education and in many cases what each will contribute to share the expenses," says Marybeth Jordan, Managing Director and Head, CIBC Investor's Edge. "Part of the disconnect between parents and their children is likely that students aren't accounting for all of the costs beyond tuition. That's why the conversation between parents and students about the full costs of education, and how to pay for it, needs to start long before the first tuition payment is due."

"While it's clear from our polling that parents want to help pay for their children's post-secondary education, in most cases they are taking on the lion's share of a rapidly rising expense - and covering far more than their kids realize," adds Ms. Jordan.

Parents and students need to prepare for the cost realities of post-secondary education

A recent CIBC poll found that students are finding it difficult for students to cover their own education costs due to both a tight labour market and the rising costs of post-secondary education in Canada. Tuition costs alone have increased by 44 per cent in Canada over the past decade, according to the Canadian Centre for Policy Alternatives.

"Given that parents today expect that it will cost about $64,000 to put each child through school, it is extremely difficult to play catch up on an education fund when their kids are in high school," says Ms. Jordan. "It's important for parents to include education in their overall financial plan and start making contributions, no matter how small, while their kids are young."

"Not having a plan can compromise their own financial priorities of paying down debt and saving for retirement," she adds.

Tips to help manage education costs:

  • Build an education plan - Parents should consider the real costs of post-secondary education and build a savings plan that outlines how much the student will cover and how much the parents will contribute.

  • Use a Registered Education Savings Plan (RESP) - An RESP builds education savings faster, taking advantage of the Canada Education Savings Grant to grow your investment. CIBC Investor's Edge was the first bank-owned self-directed brokerage to remove administration fees for RESP accounts, helping parents to start small and save more for their children's education.

  • Start the conversation early - Parents and students should discuss post-secondary education goals to understand if the student intends to pursue higher education and, if so, whether they plan to attend college or university and whether they will stay at home or go away to school.

  • Create a budget - Having a financial plan in place for students before school starts can help make the most of  your resources.  Use the CIBC online Budget Calculator to get a clear picture of all your expenses, and how much you have to spend.

  • Track spending - Use the CIBC Mobile Banking App to see account transactions and balances in real time. Services such as CIBC CreditSmart® can also help students stick to their budget, by allowing them to set a budget limit on each spending category on their credit card, and be notified by phone, email or online message when they exceed their customized budget.

  • Student Banking Offer - CIBC offers a bank account for students with unlimited transactions and no monthly fees.  A CIBC student bank account makes student life simple and provides peace of mind that their everyday banking won't lead to unexpected charges.

KEY POLL FINDINGS
The average percent that parents with children under 25 in Canada plan to pay for their child's post-secondary education:

National 67%
B.C. 70%
Alberta 58%
Man/Sask 55%
Ontario 69%
Quebec 74%
Atlantic Canada 52%

The average expected cost that parents with children under 25 in Canada think their child's post-secondary education will be:

National $64,300
B.C. $73,200
Alberta $71,900
Man/Sask $66,100
Ontario $70,300
Quebec $43,100
Atlantic Canada $68,700

The sources by which college and university students in Canada expect their post-secondary expenses will be paid:

Students, through their jobs 33%
Parents or other family 33%
OSAP / Government loan 18%
Scholarships or bursaries 10%
Personal loan / line of credit 4%
Other 2%

The percentage which college and university students think their parents should contribute to their school expenses:

Between 0 and 25% 41%
Between 26 and 50% 27%
Between 51 and 75% 15%
Between 76 and 100% 16%

Leger conducted an online survey of 1,056 Canadian parents with children under 25 between July 21 and 23, 2014 and 500 Canadian university or college students between July 10 and 17, 2014. The survey of parents has an associated margin of error for a probabilistic sample of the same size of +/-3.1%, 19 times out of 20. The survey of post-secondary students has an associated margin of error for a probabilistic sample of the same size of +/-4.38%, 19 times out of 20.

About CIBC
CIBC is a leading Canadian-based global financial institution with nearly 11 million personal banking and business clients. Through our three major business units - Retail and Business Banking, Wealth Management and Wholesale Banking - CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada with offices in the United States and around the world. You can find other news releases and information about CIBC in our Media Centre on our corporate website at www.cibc.com.

SOURCE CIBC

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone in...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...