Canadian parents are more likely to save for their kid’s education than parents in other countries. A study was done on parents in 15 different countries and it was discovered that 72% of Canadians are saving for their kid’s education as opposed to other countries that have lesser percentages.
A study was done on parents in 15 different countries and it was discovered that 72% of Canadians are saving for their kid’s education as opposed to other countries that have lesser percentages.
During an interview with the Stewart and Kett Financial Advisors in Toronto, Cynthia Kett, told reporters that she was not surprised by the results of the study because she has had first-hand experience of just how seriously Canadian parents take their children’s education.
“I would say the majority of our clients that are parents are saving for their children’s education, even if they have not started yet, they have the intention to do so.”
However, the question is are the parents the only ones contributing towards the savings?
Although parents are the leading contributors for their children’s education savings, children in universities are however expected to foot their bills. The study showed that 96% of parents are willing to save for the entire education of their kids while 34% are only saving until their children reach university level where they will take care of the bills.
But these savings do not come easy.
According to the study conducted, parents that are saving for their children’s education are with the hope that they will decide on what field of study their children should choose. 62% of parents especially fathers want a say in what direction their children should go in life on the basis of the income they will get to make.
Mothers, on the other hand, are more focused on the potentials of the children backed by their interest before considering the income.
Parents with low earnings are more prepared to save for the education of their kids than saving for retirement. In contrast, parents with high incomes are less likely to save for their kid’s education.
The Canadian government has already made plans to increase the Canada Students Grant for students with low earnings to $3,000 for full-time students and $1,800 for part-time students while repayment can be done after the students finish their studies and are gainfully employed.
The executive vice president and head of retail banking and wealth management for HSBC Bank Canada during a news release disclosed that” this step will help parents save for their child’s education while it will not affect their savings for their retirement.”
“Parents want to take advantage of the Canada Education Savings Grants offered by the federal government through RESPs. Where else can you get a guaranteed 20% rate of return on your savings?”