A college education is costly, especially if you’re sending more than one child to a private university for quality training. The tuition alone could consume the bulk of your life savings, while other costs, such as lodging and essentials like food and transportation, could add extra weight.
Apart from that, there is also the matter of choosing a college that will prepare your child for the real world. It’s best to prepare for these challenges early so that your child is as secure as possible in their college life. Here are a few tips to consider.
1. Build a Dedicated College Fund
This is as basic as it gets, but setting aside an amount each month while your child is still an infant will allow you to gradually build a large enough budget for a private college education. It’s only a matter of building a money-savvy habit.
Consider how much you and your partner are earning per month, and come up with a manageable percentage that will go towards their college education. Start small if you’ve just started a family, and gradually increase the allocation as you earn more. With consistency, you should be able to lighten your financial load when the time comes for your child to leave home for college.
2. Explore Savings Plans
It’s possible to grow your child’s college fund by parking it in a dedicated bank account, but keep in mind that there are government-sponsored programs designed to help boost your savings as a tax-sheltered investment. Canadian families can opt for a Registered Educational Savings Plan or RESP, which features a government grant of up to 20% of their total contributions.
If you open one, you could access a lifetime maximum government grant of $7,200 per child. Combined with your contributions, your child could access a lifetime limit of $50,000, which can be used for transportation and books, in addition to tuition costs.
3. Consider Scholarship Opportunities
If your child has a passion for one thing, it’s best not to overlook their potential. Their love for art or sports could open up scholarship opportunities. This is not to say you can exploit your child’s interests to save money, but you just need to be supportive in terms of encouraging and building connections with reliable people who could refer your child to the right programs.
You could also collaborate with your child in choosing schools or colleges with strong scholarship programs, especially for athletes and gifted engineering and science students. Your help should also extend towards teaching them to fill out applications, prepare for interviews, and tests.
4. Apply for Student Aid Grants
Local governments often provide financial aid to deserving students who are naturally gifted but lack the means to access quality education. Part-time students, for instance, can access Federal student aid grants to families that are listed below the average income threshold. You can also have your child apply for sector-specific grants and First Nations aid programs.
No matter the case, it matters to do your research and weigh the pros and cons of each option while your child is still young. This will allow you to prepare complete applications for the grants that best suit your situation as well as your child’s educational needs.
Endnote
College education is expensive, but this shouldn’t discourage you from giving your child the kind of training that will prepare them for the real world. Consider these tips and work towards building your child’s future without much financial hassle.