Budgeting for education
Children are expensive, no parent doubts it, and one of the biggest costs of childhood comes in the form of education. Budgeting for education depends a lot on where you intend to send your child, and how much tuition can be reduced with multiple children.
Consider all the costs when budgeting for education
Planning ahead is a great way to get started in budgeting for your child’s educational costs, but it’s important to consider all aspects. On top of tuition (which can range upwards of several thousands of dollars), there are also fund raising commitments, parent’s association fees, parking, uniforms, textbooks, and more.
Of course, none of this says anything at all about extra curricular activities that your child may want to get involved in. These costs all need to be added up to properly budget and factor in how much needs to be put aside.
How to pay for educational costs
There are two different key elements that go into covering your childrens’ education, preparation and planning. Obviously you won’t be able to do an entirely full budget up until you know where you want to send the children, but you can begin at the time of birth to put money aside for the cost that will be incurred.
There are often programs that can assist in saving for childrens’ education, so look into it (perhaps during pregnancy or your child’s first year of life?).
Consider alternative sources of funding
If you have a line of credit, keep it payed off. If you have equity in the house, consider it an option. If you learn about a scholarship fund or RESP, begin to invest. Research and consider every source of funding possible when saving up for a big cost like your child’s education.
You can also save money quickly by locking it in for a few years in a term deposit, GIC, or other form of investment.
Consider salary contributions
Some employers offer their employees the option to pay into RESPs or education funds, or alternatively lower taxes by paying out of your pre-tax salary. Look into these options and use it to fund your savings for the education as best as you can.
Look into discounts from the schools themselves
Schools will often offer discounts for paying early in full, paying for multiple children, or even paying upfront for schooling. These discounts can save substantial amounts, just by using the savings you’ve prepared upfront instead of in pieces.
If you’re on the other side of this situation and are still struggling to pay for schooling fees, look into scholarships and bursaries that your child may qualify for to help cover the costs.
These are just some of the options associated with raising money for your child’s education, a costly but worthy investment.