News Feed Item

BMO Study: Canadian Parents Expect to Pay for Almost Half of Their Kids' Post-Secondary Education

- Student assistance programs (18 per cent), child's savings (17 per cent) and scholarships (11 per cent) identified as other sources of funding

TORONTO, ONTARIO -- (Marketwired) -- 08/25/14 -- With thousands of students making their way to university and college campuses across the country, today BMO Global Asset Management issued the results of a study which found that their parents are expecting to pay for close to half (42 per cent) of their kids' university/college expenses, including tuition, books/supplies, and living expenses.

Other sources of funding identified included:

--  Federal/provincial student assistance (18 per cent of total costs)
--  Students' savings (17 per cent)
--  Scholarships (11 per cent)

The study also found that fewer than half of parents (46 per cent) wish they had more support from family and/or friends to help finance schooling, and more than half (52 per cent) wish people would contribute to their kids' post-secondary education savings in lieu of gifts.

Further, almost eighty per cent (79 per cent) are worried about the rising cost of post-secondary education and 70 per cent are concerned that their children will not be able to afford it.

"With many Canadian parents footing the bill for such a large portion of their child's university or college experience, it's not surprising that the majority are concerned about the costs," said Robert Armstrong, Vice President and Head of Managed Solutions, BMO Global Asset Management. "The total current cost for an undergraduate university degree can exceed $80,000 and is expected to surpass $140,000 by the time a child born in 2014 is old enough to enroll. Given these amounts, the sooner parents start saving for their children's education through tax efficient vehicles like RESPs, the better."

According to the study, two-thirds (66 per cent) of parents have already started a Registered Education Savings Plan (RESP) for their child. This represents a significant increase from 2012, when only 52 per cent of parents had set up an RESP.

Non-financial concerns around university/college life

The study also examined the non-financial concerns of parents surrounding their child's experience while at university or college. These included:

--  Getting a job after graduation (75 per cent)
--  Maintaining good grades (67 per cent)
--  Having a good overall experience (63 per cent)
--  Staying focused on school/not "partying" too much (60 per cent)

"It's clear that parents already have enough to worry about when they send their kids off to school without having to think about how they're going to pay for it," said Mr. Armstrong. "Opening an RESP as soon as possible, contributing often and taking advantage of government grants, such as the Canada Learning Bond, can help lower the financial stress associated with funding a post-secondary education."

Regional Breakdown

            % of post-                                             % who are
             secondary   % concerned                               concerned
             education  about rising   % concerned                  about if
          bill parents       cost of     they will               their child
                   are         post-   not be able                will get a
          expecting to     secondary     to afford   % who have    job after
Region             pay     education      the cost      an RESP       school
National            42            79            70           66           75
Atlantic            32            86            79           58           86
Quebec              38            79            59           53           47
Ontario             46            79            71           75           85
Prairies            39            75            74           59           85
Alberta             43            76            73           74           79
B.C.                44            81            75           67           83

To learn more about saving and RESPs, please visit: www.bmo.com/resp.

For more information on wealth management news at BMO please visit http://www.linkedin.com/company/bmo-wealth-management-services-canada?trk=top_nav_home.

Get the latest BMO press releases via Twitter by following @BMOmedia

Survey results cited in this report are from a Pollara survey commissioned by BMO Global Asset Management using interviews with an online sample of 1,000 Canadian parents with children under the age of 18, conducted between August 5th and 8th, 2014. The margin of error for a probability sample of 1,000 is +/- 3.1%, 19 times out of 20.

(i)Education costs include tuition and a single residence room with meals and books, from the BMO Education Savings Calculator

Media contacts:
Amanda Robinson, Toronto
[email protected]

Valerie Doucet, Montreal
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
"NetApp is known as a data management leader but we do a lot more than just data management on-prem with the data centers of our customers. We're also big in the hybrid cloud," explained Wes Talbert, Principal Architect at NetApp, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Since we launched LinuxONE we learned a lot from our customers. More than anything what they responded to were some very unique security capabilities that we have," explained Mark Figley, Director of LinuxONE Offerings at IBM, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
I love the beginning of the year. It is always enjoyable to see people's predictions for trends in the coming year. Publications like Fortune, CNN Money, Washington Post and the Atlantic speculate about what gadgets and technologies are going to take off in popularity this year, psychics predict which celebrities will have babies and fall in love, and I start to think about trends like DevOps and where the software delivery industry is headed next.CollabNet, Eric Robertson, predicted.
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DXWorldEXPO LLC announced today that "Miami Blockchain Event by FinTechEXPO" has announced that its Call for Papers is now open. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expe...
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
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...