Like Father, Like Son, but Twice the Price. Planning for Rising #Education Costs.

They have "the knack"

I met my husband at university, and at the time he was an engineering student. He was funny and smart and studied about things I had no understanding of. We graduated and he worked at things I had no understanding of. On occasion I'd overhear him speaking in that mystical language of tech, but it wasn't until later I realized he had "the knack."

We married and he fixed the dishwasher, stove, washer and dryer. He was my in-house IT guy and made the "interweb" and computers work. He knew magical things like science and math, and could do long multiplication and division in his head! Surely there could be no others like him. He must be one of a kind!

We lived together in marital bliss with our two young children amongst the working appliances and computers, until one day it all changed ...

my youngest started to speak the mystical language of tech with his father. My eldest and I looked on in amazement, not understanding a word they said, but realizing this meant there were not one but two with "the knack!"

My son was going to follow in his father's footsteps.

But here's the catch: twenty-five years ago my husband graduated with a Bachelor of Engineering Degree and the tuition and residence costs for that 4-year program was between $35,000-$40,000. Today, tuition and residence for my son at the same university for a 4-year Bachelor of Engineering Degree will be between $80,000-$90,000.

The same degree at the same university is more than double the cost!

AND

Engineering Programs are more expensive than many other programs, meaning the difference between the tuition for an Engineering and an Arts program is nearly $4,000 a year.

We're Going to Need a Plan!

By the beginning of middle school, most parents start to see the direction in which their kids' abilities and interests lie. By Grade 8, they're making decisions about whether to take Applied (college stream) or Academic (university stream) courses in high school. This is the perfect time to get kids involved and thinking about post-secondary education, saving for that education and understanding budgeting and money management. 

This is also a good time for kids to look into grants and scholarships. Scholarships (aka money) can be incentive to work hard and keep their grades high, since many universities offer a scholarship for high averages at the time of admission. The university I attended currently offers admission scholarships between $4,000-$16,000.

Waiting until your child knows what they want to be isn't when the plan should start. Although it's never too late to start saving for post-secondary education, the earlier you start the better.

• TIP: If you find the language of Registered Education Savings Plans (RESPs) to be like the mystical language of tech, the Heritage Funds Glossary of Terms might be helpful.
• Although your child's direction and area of study won't be revealed until later, saving for that studying needs to start ideally as soon as they're born, allowing your RESPs to accumulate over time. Regular contributions can add up to big savings over 18 years. 
• Setting up monthly auto-contributions makes it easy, and ensures you don't forget. We all have the best intentions but a plan makes it happen.
• Starting early allows you to take advantage of all the grants you're entitled to, providing you meet the criteria.
• TIP: An RESP is a great place to put cash gifts from family and friends, and your kids know those who care about them invested in their future! When my nieces and nephews were young I gave them a small toy and the rest was a cash gift for their education fund.
• Be sure to check if your employer offers post-secondary scholarships to employees' children who maintain an honours average.
• Review your RESPs and savings plan regularly to evaluate where you are compared to your goals, and if adjustments need to be made. 
• Lastly, they say it takes a village and the Heritage Funds Blog is a community that offers resources and advice on a variety of topics from education, parenting, and finance to crafts and activities. 

You don't need to have "the knack" to put a great plan for your child's education in place, but you can't delay, so start saving today!

Yep, just me Cathy thinking out loud about the rising cost of education.

Note: As a Heritage Mom I was compensated for this post, and for sharing my thoughts about RESPS and saving for post-secondary education. All opinions are my own and reflect my personal experience saving for my two kids' education.