Welcome!

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

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
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
"Splunk basically takes machine data and we make it usable, valuable and accessible for everyone. The way that plays in DevOps is - we need to make data-driven decisions to delivering applications," explained Andi Mann, Chief Technology Advocate at Splunk and @DevOpsSummit Conference Chair, in this SYS-CON.tv interview at @DevOpsSummit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"Logz.io is a log analytics platform. We offer the ELK stack, which is the most common log analytics platform in the world. We offer it as a cloud service," explained Tomer Levy, co-founder and CEO of Logz.io, in this SYS-CON.tv interview at DevOps Summit, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
In his session at @DevOpsSummit at 19th Cloud Expo, Robert Doyle, lead architect at eCube Systems, will examine the issues and need for an agile infrastructure and show the advantages of capturing developer knowledge in an exportable file for migration into production. He will introduce the use of NXTmonitor, a next-generation DevOps tool that captures application environments, dependencies and start/stop procedures in a portable configuration file with an easy-to-use GUI. In addition to captur...
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Due of the rise of Hadoop, many enterprises are now deploying their first small clusters of 10 to 20 servers. At this small scale, the complexity of operating the cluster looks and feels like general data center servers. It is not until the clusters scale, as they inevitably do, when the pain caused by the exponential complexity becomes apparent. We've seen this problem occur time and time again. In his session at Big Data Expo, Greg Bruno, Vice President of Engineering and co-founder of StackIQ...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of D...
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, John Jelinek IV, a web developer at Linux Academy, will discuss why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers...
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal ...
DevOps and microservices are permeating software engineering teams broadly, whether these teams are in pure software shops but happen to run a business, such Uber and Airbnb, or in companies that rely heavily on software to run more traditional business, such as financial firms or high-end manufacturers. Microservices and DevOps have created software development and therefore business speed and agility benefits, but they have also created problems; specifically, they have created software securi...