Getting a Good Return on Education Expenses

If you are one of the many parents who are writing cheques to universities this month; you are not alone if you are hoping to get a good return on your investment.  A recent study by HSBC found parents are expecting the university education their kids are receiving should prepare them for a successful career.

Almost half of Canadians polled (47%) said a university education was a key component in competing in the workplace, followed by higher potential income (43%) and the chance of maximizing their child’s life opportunities (41%).

Mothers and fathers apparently have different ideas on what a good education should provide; mothers are more concerned with the income-earning potential a university education will bring (54%), compared to only (38%) of fathers.  In the elementary years, 64% of mothers feel strong skills in the core subjects are most important, while only 54% of fathers agree with this.

Canadian parents have high aspirations for their children when it comes to education.  Four in five or 82% of parents in Canada want their children to attend university, while almost half (48%) want their children to study at a post-graduate level.

Canadian parents feel public schools are just as good as private schools, although 26% do see the value of a private education.  Furthermore, even though 43% feel public schools provide their children with the necessary skills; only 24% of respondents feel the public system is living up to that standard.

When it comes to paying for that university education, Canadian parents said they would allocate 54% of their money towards their child’s education. 

Where does the money come from?

• Savings 55%
• RESPs (and alike) 53%
• Current Income 48%
• Other Investments 34%

Planning to pay for your kid’s post secondary education is a vital part in making their (and your) education dreams come true.  Of the Canadian parents polled 33% agreed the number one thing they wish they had done differently; was that they should have started saving sooner.

If you need help evaluating your education savings options, don’t hesitate to contact me, I would be happy to help.

Enjoy the last long-weekend of the summer.

Tracey

Source:  Original article posted on Advisor.ca 04-16-14 by staff.