Many Canadian parents are stretching themselves thin 鈥� even going as far as to postpone their retirement in some cases 鈥� in order to help pay for their children鈥檚 education, according to .
The poll of 1,000 Canadians with at least one child revealed that 81 per cent of parents believe it is their duty to help their children pay for their post-secondary education.
Fifty-two per cent of parents who participated in the online survey by Léger and Embark, an education savings and planning company, said they would go into debt and 61 per cent said they would be willing to postpone their retirement in order to do so.
RISING COSTS MAKING IT HARDER FOR PARENTS TO SAVE
However, Andrew Lo, president and CEO of Embark, said that while many parents want to help their children pursue post-secondary education, the rising cost of living has made it harder for them to set aside money to achieve that goal.
鈥淲e surveyed across Canada and found that while people are very highly motivated to save for their children's education, economic realities make it a difficult choice for them,鈥� Lo told CTVNews.ca in a phone interview.
Seventy-three per cent of parents polled said it鈥檚 been harder to save for their children鈥檚 education with prices and living expenses going up and 40 per cent said they鈥檝e stopped saving for their child鈥檚 education altogether because of how much everything is costing them.
The cost of paying for a child鈥檚 post-secondary education is playing a role in how many children Canadians are having as well, the survey found, with 42 per cent of parents saying the price tag attached to sending a child off to university or college either has influenced or will influence the number of children they have.
TIPS FOR PARENTS
The survey also revealed that 62 per cent of parents think saving for their children鈥檚 education can be overwhelming at times.
Lo said there are a few steps that parents can take to set their children up for success while also minimizing their financial stress.
First, he said parents should figure out how much post-secondary education costs and what they are willing and able to pay for it.
鈥淎 few dollars a month will make a big difference,鈥� he said, adding that parents should begin saving as early as possible, allowing their savings to grow over time. .
If they haven鈥檛 already, Lo recommended starting a .
An RESP is a long-term savings plan to help people save for a child's education after high school. Parents and grandparents can contribute money to an RESP at any time 鈥� up to a total of $50,000 per child.
鈥淲hen you invest money in this instrument, it grows tax free, so the income you earn from the investment grows tax free (until it鈥檚 withdrawn). The government grants coming in also can grow tax free. And that money is essentially free,鈥� Lo explained.
Asking loved ones for monetary gifts for a child鈥檚 birthday and other holidays is another way Lo said parents can collect contributions for a child鈥檚 RESP.
Lo noted that to help parents calculate how much money they should be saving up until their child turns 18, keep track of their RESP contributions and access government grants for a percentage of their investment contributions.
Financial advisors can also offer advice to parents who are looking to begin saving for their child鈥檚 post-secondary education.
When it comes to making any financial decision, Lo emphasized the importance of doing your research and getting help when you need it.
鈥淜nowledge is power,鈥� Lo said.
METHODOLOGY
An online survey of 1,000 Canadians parents with at least one child under the age of 18 in the household was completed between May 5 and 12 using Leger鈥檚 online panel.
No margin of error can be associated with a non-probability sample like a web panel in this case. For comparative purposes, though, a probability sample of 1,000 respondents would have a margin of error of ±3.0 percentage points, 19 times out of 20.
