Written by: Kaleido
Back-to-school expenses are a central concern for parents, especially since these increase yearly with inflation and as children progress in their academic careers. In 2017, Quebec parents spent an average of $1,0161 per child for school supplies and tuition, all education levels combined (pre-school to university), compared to $912 in 2016,2 a 10% hike. In the last five years, these expenses have risen by over 44%―they amounted to an average of $7053 per child in 2013. And the older their children get, the more parents have to pay.2 Families can expect to pay on average:
Of course, the bigger the family, the bigger the bill, so the new school year doesn’t come in cheap for larger families. But even if most parents tap directly into their bank accounts to cover these expenses, there are ways to prepare for it and anticipate its costs.
About 80% of parents consider the financing of post-secondary studies to be an important financial concern.2 The cost of education is constantly increasing. While it currently costs around $ 100,000 to complete two years of CEGEP and three years of university in Quebec, it is estimated that this number will increase to just over $138,000 for the same schooling in 2035.4
While most Quebecers turn to their personal bank accounts to cover the recurrent back-to-school expenses, the costs of post-secondary studies can be planned for years in advance.
By investing in a registered education savings plan (RESP) in their children’s early years, families could receive up to $12,8005 per child in government grants, depending on their net family income. When you invest in an RESP, your savings grow tax-free over the life of the plan, which makes it a great way to lessen the financial strain post-secondary studies represent for your everyday budget.
For more information regarding the different plans available, go to www.kaleido.ca/en/resp-investement.
1. Education Savings Barometer 2018: a web panel survey conducted in collaboration with the CROP polling firm from November 9-17, 2017, using a sample of 1,032 Quebec residents.
2. Education Savings 2017: a web panel survey conducted in collaboration with the CROP polling firm from October 20-28, 2016, using a sample of 1,000 Quebec residents.
3. Web panel survey titled “L’importance de la scolarité des enfants Québécois” conducted by the CROP polling firm on behalf of Kaleido from May 15-20, 2013 and using a sample of 1,000 Quebec respondents.
4. Estimated cost to complete two years of CEGEP and three years of university in Quebec, housing expenses included. Yearly increase of 1.7%. Sources: Ministère de l'Éducation et de l’enseignement supérieur, Ministère de la Famille, Statistics Canada, Canada Mortgage and Housing Corporation (CMHC).
5. The Canada Education Savings Grant (CESG) rate is 20% to 40% based on adjusted family net income. The annual limit is set at $600 and the lifetime limit is set at $7,200 per beneficiary. The Quebec Education Savings Incentive (QESI, only available in Quebec) rate is 10% to 20% based on adjusted family net income. The annual limit is set at $300 and the lifetime limit is set at $3,600 per beneficiary. The Canada Learning Bond (CLB) is up to $2,000 per beneficiary and is offered for children born after December 31, 2003, and whose families meet the financial criteria. Certain conditions apply; refer to our Prospectus.