Most families share in the task of contributing to their kid’s education. There are many ways with which this is now possible. The registered education savings plan plus many other savings plans have made paying for children’s school tuition be more affordable and less of a financial burden as heritage education funds to parents.
The tuition contribution and payment get even easier when kids use their part-time and summer holiday jobs to get scholarships and bursaries which pay for their education. Plus, any shortfall in the fees can be made up for through borrowing. The student loans usually cover a significant portion of this.
Still, all this will not be possible if you do not make early plans on where and how to allocate your recourses to pay for your kid’s tuition fees. Failure to do this, and you will basically be setting yourself up for debt accumulation to pay for your kid’s tuition.
1. Create a savings plan
It is good practice to start teaching your kids about saving and the benefits it comes with when they are still young. If you can start teaching your kids to start saving for their college or university early asking to spacialists at Heritage RESP, you will be in a much better position to contribute to their tuition fees. Learning to save at an early age also helps teach your kids the value of having some money set aside for the uncertain future.
2. Talk to your kids
As parents, it is your responsibility to educate your kids on the importance of education. So, try as much as possible to include your kids in talks that touch on their post-secondary education funding. Let your kids know how much you can contribute, as a parent, to their registered education savings plan. You also need to talk with them on the amount you expect them to fund in their education. The talks can also include setting up a savings plan for them that sets aside a portion of their part-time and summer job earnings for their education.
3. Find the best work/school balance for your kids
Most post-secondary students work part-time to have some cash on the side that they can save and spend on other things. While this may seem like good practice, it can also impact your child’s grades at school especially if he/she puts more time into working than classwork. There are instances where advising your child to forgo working for a while to pursue scholarships might even be the best idea. In this case, you will have to provide everything for him/her. After all, the primary objective here is to get good grades first: everything else comes later.
4. Open an Registered Education Savings Plan
Families can get up to and upwards of $8,400 in heritage RESP grants for every child. The low-income families can get even more of about $10,400 per child. The only catch is that you must have a registered education savings plan and make regular contributions to it to qualify for a grant.
5. Help your child apply for scholarships and bursaries
If your child happens to land a scholarship or bursary, your tuition fee responsibilities will practically be over. And the best part is that scholarships and bursaries do not have to be repaid. Plus, they are also tax-free. Bursaries and scholarships are also available for other non-academic characteristics like community involvement and leadership roles. So, it is not a must that you be an A-grade student.
Meeting your child’s tuition fee can be a hassle and stressful financial issue especially if you do not have the financial backing. But you can always make it less strenuous on yourself by enforcing these smart tips.