Parents are willing to pay for majority of their children's college or
university costs, expected to be around
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:
|• 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 ||•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 ||•40 per cent expect to have more than |
"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
"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
Parents and students need to prepare for the cost realities of post-secondary education
"Given that parents today expect that it will cost about
"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
•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
•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 -
KEY POLL FINDINGS
The average percent that parents with children under 25 in
The average expected cost that parents with children under 25 in
The sources by which college and university students in
|Students, through their jobs||33%|
|Parents or other family||33%|
|OSAP / Government loan||18%|
|Scholarships or bursaries||10%|
|Personal loan / line of credit||4%|
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