Monday, April 27th18.7°C
25924

Total costs for university

The cost of a four-year university degree for a child born in 2013 could rise to more than $140,000 due to tuition inflation, a new study says.

But three-quarters of parents with children under 18 haven't made a detailed estimate of the total cost of post-secondary education, said BMO's Wealth Institute in a report released on Wednesday.

Tuition and other costs for a four-year university degree now can cost more than $60,000, the report said.

"I think that for most people if you tell them that tuition has increased two or three times the rate of inflation they will be surprised at that," said BMO's Caroline Dabu.

This can leave parents unprepared for the costs and students with hefty loans to pay back when they graduate, Dabu said from Toronto.

Over the last five years, the average annual inflation rate has been 1.6 per cent while tuition inflation was 3.9 per cent, the bank said.

It also noted that at the beginning of the 1990s, average undergraduate tuition fees in Canada were $1,464 and they've risen more than three-fold to $5,581.

Parents often see college or university as a long way off for their children, said Dabu, vice-president and head of BMO's wealth planning group.

"The top mistake is not starting early enough."

The report also found that 83 per cent of parents expect to pay for their child's college or university costs, with 44 per cent expecting their child will also contribute.

"Let them know you're saving for their education and have them involved in how you're saving," Dabu said.

If students have a part-time job, parents could have a portion of earnings go toward post-secondary education to help them understand budgeting, she added.

Only half of parents have set up a registered education savings plan (RESP), said the inaugural report by the bank's newly created Wealth Institute, called: "Student Tuition and Debt on the Rise: RESP's and Beyond."

The Canadian Press


Read more Business News

25849


Recent Trending




Today's Market
S&P TSX15344.08-64.25
S&P CDNX690.10-7.60
DJIA18037.97-42.17
Nasdaq5060.25-31.84
S&P 5002108.92-8.77
CDN Dollar0.8265-0.0005
Gold1199.90-3.40
Oil56.57-0.42
Lumber255.00-1.20
Natural Gas2.48-0.01

 
Okanagan Companies
Pacific Safety0.08-0.04
Knighthawk0.010.00
QHR Technologies Inc1.40+0.02
Cantex0.035+0.005
Anavex Life Sciences0.395-0.035
Metalex Ventures0.095+0.000
Russel Metals27.05-0.11
Copper Mountain Mining1.25+0.10
Colorado Resources0.10+0.01
ReliaBrand Inc0.004-0.001
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.19-0.01
Decisive Dividend Corporation1.80+0.10

 



25968

FEATURED Property
22673451524 Rose Meadow Road
5 bedrooms 3 baths
$479,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Buy versus rent

Consider the top five reasons to buy versus rent: #5 Experience Freedom: Home ownership will free you from the ties that bind you to a landlord...no longer will you be dependent on someone else&rsq...


What's your score?

There was a time when we would sit down with nothing more than a sheet of paper and a sharp pencil to do the math. Totalling our expenses and subtracting our revenue, the amount left over was the answ...


Do you dare to dream?

Photo: Thinkstock.comI have never been able to understand why some people can only see as far ahead as the end of the current day. Instead of aiming for long term goals, they just wallow in their ever...

_



26069

26091


Member of BC Press Council


25541