When it comes to spending on their kids, a new survey shows more Canadian parents have invested in extracurricular activities than in Registered Education Savings Plans.
The study, called "," was published Thursday, by the Canadian Scholarship Trust (CST), an RESP provider.
The report showed that approximately 66 per cent of Canadian parents have, or know someone who has, borrowed money or used retirement savings to put their children through extracurricular activities.
In contrast, 48 per cent of parents have invested in a Canadian RESP.
CST reported that 43 per cent of parents said they'd borrowed money on a credit card, line of credit, personal or family loan for extracurriculars like hockey. The remaining 23 per cent deferred their retirement or used their retirement savings for extracurriculars.
More than half of Canadian parents (57 per cent) said they feel every child should have the chance to play hockey if they want to, "because it's part of growing up in Canada," CST said. The percentage represents a drop of more than 10 per cent from last year, when 69 per cent said all children should be able to play hockey.
Despite the high rate of borrowing for extracurriculars, nearly half of parents said they knew someone pulling their kids out due to the cost. Thirty per cent said they, or someone they knew, regret the amount of money spent on activities like sports.
One-fifth of parents surveyed said they'd spent more than $1,500 per child each year on extracurriculars, with spending rates the highest in higher-income households.
In households with incomes greater than $100,000, 35 per cent of parents said they spent more than $1,500 per year. Only 10 per cent of parents earning less than $40,000 annually spent more than $1,500.
Though only half said they'd invested in an RESP, 63 per cent said they felt it was more important to save for post-secondary education than extracurriculars.
The study is part of an awareness campaign meant to "spark a debate about where Canadian parents are placing their priorities," CST said. Data was based on a 2015 Leger survey and the Canada Education Savings Program's 2014 review.
