Given the numbers we looked at from Stats Canada from 2009, you need to ask yourself, just how much is this all going to cost, and how can I deal with University Costs?
Let’s run down some of the expenses you are going to need to remember part of the entire “going to University” equation:
- Cost of Tuition (which varies depending on the school we have gone to, and the faculty in that school as well).
- Service Fees, some of these you cannot hide from and you need to remember they are there.
- Books and Lab Fees, not expenses you can hide from (you can try to lower them by getting used books or buying them where they are cheaper).
- Living expenses (if the child lives away from home), such as a residence and food plan, room and board if they rent a room off campus, or Rent and living costs if they live in an apartment-like model.
- Moving costs, if they leave home (especially if they are going a LONG way away).
- Computing costs, if they don’t already have a computer
- Back to school supplies, paper, printers, etc., etc., etc.,
- Coming home money
- Everyday living money
First, you need to ask, “Am I going to pay this, or am I going to leave it up to my kids?”. In my discussions previously, many of my readers have pointed out they didn’t have their education paid for, nor do they plan to pay for their kids’ education. Not helping with the costs is an option for many people (and the only option for some folks). If you don’t plan on footing the bill, you don’t need to worry about this.
If you plan on paying for this, how will you save? Will you use the RESP savings vehicle? Maybe use your TFSA for extra savings? Get your kid a job while at school to help out (so they appreciate the cost of their education)? Hope to win the lottery? Sell a kidney on e-bay? All exciting ways to save for the financial onslaught that University costs can be.
University Costs More than One?
Are you going to have multiple kids at University at the same time? That makes saving doubly important (and you better put twice as much away, at least).
Co-op education for your kid? That way, they earn their way through school, and it is less of a burden on you?
Nobody moves out. The kids go to school locally and live at home. That saves a WHOLE LOT of money, but then again, you have another Adult in your house, which may cause other issues, but that can cut your University bill in half if the kids live at your place (but then, how do you get them to move OUT once they have a degree?).
Planning for this orgy of spending can cause your hair to turn prematurely grey. However, it will help you out in the long run.
You have forgotten 2 major expenses for kid at University:
#1 clothing
#2 bar money 😉
You sure don’t want to finance them but they will surely use some of their allocation for both of them 😉
Maybe the best thing is to pay for things that come with bills (and send cheques to the landlord instead of your kid). Therefore, he will have to work if he wants to party 😉
For those who didn’t get their education paid for – was this because your parents chose not to, or because they couldn’t?
This is important because student loans means test the parents. If you can’t pay for your kids education, they’ll be eligible for loans that are interest free during their education, and pretty low interest after that, plus tax deductions. If you can pay and are choosing not to, your kids are basically screwed. It is NOT POSSIBLE to fund a full time education on part-time work. Their only chance would be to get a private loan, on which they’ll pay interest while attending school…this introduces increasing money stress as the courses get harder. You’ll still usually have to countersign for those loans in order for your kid to get them, so you take on some risk.
Various things to think about. I do think that kids need to contribute to the cost of their education. My first shot at school had my parents paying for it, and I screwed around and flunked out. My fault, and now I’m paying for it as I hold down a full time job and am taking forever to get my degree in evening classes.
My general attitude towards how my kids will be treated when it’s time, is that tuition and books will be covered. Incidentals (transportation, living expenses if they move away, party money, etc. will not be). Why? Because I want my kids to be educated, and I’m willing to pay the cost of that.
Don’t forget “entertainment” costs 🙂 I saved a lot of cash during university because I didn’t drink a lot, go to concerts or take spring break trips.
I do recommend co-op though. It’s a lot of stress and a lot of moving, but the work experience is invaluable and makes it far easier to get a decent job after graduation.
You have forgotten 2 major expenses for kid at University:
#1 clothing
#2 bar money 😉
You sure don’t want to finance them but they will surely use some of their allocation for both of them 😉
Maybe the best thing is to pay for things that come with bills (and send cheques to the landlord instead of your kid). Therefore, he will have to work if he wants to party 😉