With classes now underway in the new school year, a poll from BMO Bank of Montreal revealed two-thirds of students have been working and the top source of funding to cover tuition and expenses for post-secondary education is the money students have earned and saved themselves.
The total cost for a post-secondary education – according to research from the Federal government, including tuition, school supplies, housing and other expenses – amounts to an average of $14,500 a year.
The BMO 2012 Student Poll, conducted by Pollara, showed the multiple sources of funding to help cover the costs:
– two-thirds (67 per cent) of post-secondary students have been working;
– paying for school is the number one reason to have a job;
– for nearly two-thirds of students (62 per cent), the money they’ve saved is the top source of funding for school;
– just over half (52 per cent) receive funding from parents or family; and
– 49 per cent rely on student loans
Nearly half (45 per cent) of post-secondary students receive funding from scholarships and bursaries
The student study also revealed:
– one-quarter (23 per cent) are working full-time, while 43 per cent are working part-time;
– students with jobs are working to pay for school (75 per cent), have spending money (65 per cent), get work experience for future employment (61 per cent) or pay down debt (22 per cent);
– regionally, student employment rates are highest in the prairies (81 per cent), Alberta (79 per cent) and Atlantic Canada (78 per cent)
“Attending university or college is a hefty investment, so it’s essential that students and parents are on the same page for funding a post-secondary education,” said Sue McVey, Vice President, BMO Bank of Montreal. “Leveraging Registered Education Savings Plans (RESPs) – to which both parents and grandparents can contribute – can help pay for tuition. Beyond that, parents and students need to work together to establish a comprehensive budget ahead of the school year to manage ongoing expenses.”
Anyone, including grandparents, can invest in a child’s future by opening up or adding to an RESP, an account designed to put aside funds for a post-secondary education. Amounts invested in an RESP, will grow over time through compounding interest and the funds provided by the Canada Education Savings Grant. For example, investing $200 per year from the time your child is born until the age of 18, he/she could have up to $11,000 saved for his/her post-secondary education.
