Saturday, May 30th13.1°C
26426

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

26416


Recent Trending




Today's Market
S&P TSX15014.09-92.89
S&P CDNX692.45+0.29
DJIA18010.68-115.44
Nasdaq5070.03-27.95
S&P 5002107.39-13.40
CDN Dollar0.8029-0.0017
Gold1204.30+1.50
Oil60.86+2.49
Lumber273.40+0.90
Natural Gas2.83+0.01

 
Okanagan Companies
Pacific Safety0.14+0.01
Knighthawk0.010.00
QHR Technologies Inc1.46-0.02
Cantex0.03+0.00
Anavex Life Sciences0.40+0.00
Metalex Ventures0.07-0.01
Russel Metals25.07-0.13
Copper Mountain Mining1.27-0.03
Colorado Resources0.10+0.00
ReliaBrand Inc0.022+0.009
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.16+0.01
Decisive Dividend Corporation2.28+0.18

 



26471

FEATURED Property
2276018#406-3175 De Montreuil Court
2 bedrooms 2 baths
$209,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Yard sale pricing

Photo: Thinkstock.comI have deliberately abridged this household tips article to illustrate pricing strategies. "Tips For Pricing Yard Sale Items” was written by Lynnette Walczak, and publi...


What's a robo-advisor?

Photo: ContributedIt can only be attributable to human error. -Hal, 2001: A Space Odyssey For most of us who are within thinking distance of retirement, the term “robo” conjures up image...


Cash stressed seniors

Photo: Thinkstock.comFor many Canadian homeowners, their house represents the biggest portion of their net worth. Now, increasing numbers of seniors are starting to recognize the hidden value of their...

_



25217

26363


Member of BC Press Council


25690