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 @ThingsExpo, Greg Gorman is the Director, IoT Developer Ecosystem, Watson IoT, will provide a short tutorial on Node-RED, a Node.js-based programming tool for wiring together hardware devices, APIs and online services in new and interesting ways. It provides a browser-based editor that makes it easy to wire together flows using a wide range of nodes in the palette that can be deployed to its runtime in a single-click. There is a large library of contributed nodes that help so...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Many organizations adopt DevOps to reduce cycle times and deliver software faster; some take on DevOps to drive higher quality and better end-user experience; others look to DevOps for a clearer line-of-sight to customers to drive better business impacts. In truth, these three foundations go together. In this power panel at @DevOpsSummit 21st Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, industry experts will discuss how leading organizations build application success from all...
Most of the time there is a lot of work involved to move to the cloud, and most of that isn't really related to AWS or Azure or Google Cloud. Before we talk about public cloud vendors and DevOps tools, there are usually several technical and non-technical challenges that are connected to it and that every company needs to solve to move to the cloud. In his session at 21st Cloud Expo, Stefano Bellasio, CEO and founder of Cloud Academy Inc., will discuss what the tools, disciplines, and cultural...
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 ...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
SYS-CON Events announced today that App2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. App2Cloud is an online Platform, specializing in migrating legacy applications to any Cloud Providers (AWS, Azure, Google Cloud).
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, will introduce two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a mu...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
Trying to improve density, lower costs and run applications faster than before? Today, enterprises looking for a secure cloud strategy are increasingly turning to container-based Platform as a Service solutions for on-premises hosted DevOps. In her session at 21st Cloud Expo, Alise Cashman Spence, Offering Manager, Power Systems Cloud Solutions at IBM, will discuss the driving factors behind these cloud trends and how IBM customers are realizing exceptional performance, security and control for ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In their Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, and Mark Lav...