WHAT IS THE COST OF UNIVERSITY EDUCATION ?
As students head back to school, many parents will recognize the usual student necessities like paper, pens, pencils, binders and even some new school clothes. Often parents cover these expenses out of pocket to ensure their children are ready for the school year.
As children grow from elementary to secondary school, many parents get accustom to the costs associated with “back-to-school.” When it’s time to go to college or university, however, it can be a shock to tally all the new, additional costs. If you thought tuition was the extent of it, think again.
The chart is an average example of an undergraduate student attending university for a Bachelor of Arts degree. Although costs may vary from school to school, province to province, many of the expenses will still apply to college and university students across the country.
All of these expenses add to the cost of providing your child an education, up to $15,885 or more for one school year.
So, if your child was to attend university this September for four years of studies, the total cost could be over $66,000.
Hopefully, your child is still years away from college or university giving you time to save. Consider investing in an Educations Savings Plan such as the Global Educational Trust Plan (Global Plan).
When the Global Plan is registered4, your savings grow tax-deferred. The money is taxed only when withdrawn to pay for your child’s education and related expenses. You can contribute up to a lifetime maximum of $50,000.
Would you be ready to cover the real cost of education?
Annual Education Costs and Expenses: Tuition1 $4,724
Compulsory Fees1
(student health services, athletics and recreation,
student association and other fees that apply to full-time Canadian students) $695
Books and other reading materials2 $871
Supplies2 $120
Accommodations (1-bedroom)3
(close to the campus in an apartment for approximately eight months) (approx) $6,000
Groceries/Meals2 $2,076
Public Transportation2
(Drives to school: include car payments, insurance, maintenance, parking) $828
Miscellaneous2
(personal and health care, clothing, household items, etc.) $2,184
The Government of Canada offers additional funding such as the Canada Education Savings Grant5 (CESG) and Canada Learning Bond5 (CLB), which add up to $9,200 in extra savings to your Global Plan. And, Alberta residents could qualify for the Alberta Centennial Education Savings Plan5 (ACES).
1. “University tuition fees”, The Daily, Statistic Canada Web site, Oct 9, 2008.
2. “The Education Cost Calculator”, CanLearn Website (www.canlearn.ca), Canada Student Loans Program Directorate, Human Resources and Skills Development Canada, Oct 17, 2008.
3. “Living in Residence”, Maclean’s Guide to Canadian Universities 2009: pg. 32-34.
4. The Global Plan is eligible for registration under section 146.1 of the Income Tax Act. Registering the Global Plan is subject to meeting any and all age, residency, Social Insurance Number provisions and other requirements of the Act.
5. Subject to eligibility.
Regards,
hmisabpk
