Canadian Parents Are Flunking on Saving: Half Grade Themselves a 'C' or Worse
The cost of a 4-year university education in Canada expected to cross the 6-figure threshold in 2025, with children projected to pay $101,319 on average.
TORONTO, Dec. 10, 2024 /CNW/ - Embark, Canada's education savings and planning company, today released its annual forecast outlining the cost of a four-year university degree in Canada along with new polling data summarizing the financial health and performance of over 1,000 parents nationwide.
Key Statistics:
- 54 per cent of Canadians claimed they were off-track when it comes to saving in general in 2024, and nearly 1-in-2 (49%) say they were off-track saving for their child's education.
- 88 per cent of parents saw their expenses rise in 2024, claiming that household spending rose $12,880 on average when compared to previous years.
- When they did save, 47 per cent of parents chose to put money towards their child's education savings over other savings goals, including retirement (43%) and their mortgage (24%).
The survey found that many Canadian parents are falling behind on their financial goals, both in general and when thinking about saving for their child's education, amid rising inflation and increasing daily expenses. When asked to grade their savings efforts for the year on a scale from A+ to F, over half (54%) admitted they were "off-track," grading themselves a C or less. When looking at how much they have saved for their child's education in 2024, less than half said they were on track (44%), with 22 per cent giving themselves an F.
What letter grade would you give yourself on how much you've saved this year?
Grade |
Saving |
Saving Performance |
A+, I have saved above my goal |
3 % |
5 % |
A, I am completely on track with my goals |
12 % |
14 % |
B, I am generally on track with my goals |
26 % |
26 % |
C, I am off-track but will reach my goals |
17 % |
14 % |
D, I am off-track and hoping to get back on track soon |
15 % |
14 % |
F, I am completely off-track |
22 % |
22 % |
I don't know |
5 % |
7 % |
Rising Cost of Living Leaves Canadian Parents Struggling to Save
Parents across Canada found that increasing expenses have made it harder to save in general. Nearly all parents (88%) saw their expenses rise in 2024, claiming their household spending rose $12,880 on average when compared to previous years. As a result, over three-quarters of parents polled (77%) said saving is overwhelming right now.
Those surveyed reported that expenses that prevented them from saving this year included: groceries and household essentials (71%), gas or transportation (53%), housing–including mortgage payments or rent (52%), debt payments (40%), clothing and personal upkeep (27%), cell phone bills (26%) and childcare (21%).
The Impact on Education Savings Goals
These increased prices and living expenses have caused a negative ripple effect on their education savings goals, with 68 per cent of respondents finding it harder to save for their child's future.
Canadians instead tended to prioritize immediate needs over long-term goals. Forty-three per cent of Canadian parents had to stop saving for their child's education because of how much everything is now costing, and 29 per cent admitted to dipping into their child's education savings to cover other expenses.
However, saving for their child's education is still top of mind, with 66 per cent claiming they will reach their goals by the time their child goes to school. In fact, when they did manage to save, parents put money towards their child's education savings (47%) more often than any other type of savings, including their own retirement (43%) and mortgage (24%).
"Time and time again we see that Canadians find education to be such an important savings priority and something that is key to their child's future success, even in today's financial environment," said Andrew Lo, CEO of Embark. "With the cost of an education exceeding $100,000 in many provinces and going nowhere but up over the next few years, parents are doing all they can to ensure their children can prepare themselves for the real world without having to take on serious debt."
Which of the following did you put your savings towards in 2024? (Select all that apply)
Savings Type |
Saving Performance |
Child's education |
47 % |
Retirement |
43 % |
General savings |
38 % |
Rainy day fund |
24 % |
Housing/mortgage |
24 % |
Down payment on a house |
10 % |
Other |
4 % |
I did not add to my savings in 2024 |
18 % |
Forecasting the Future of Tuition Costs
In 2025, Embark forecasts the average cost of a four-year university education in Canada to reach $101,319 when factoring in tuition, residence, living expenses, textbooks and school supplies; the first time the value has ever crossed the $100,000 mark. In 18-years, the company predicts this value to rise to $137,490, with kids born in 2024 projected to pay 36% more for an education when compared to today.
When looking at provincial figures, students within six out of ten provinces next year are forecast to pay more than $100,000 for a 4-year university education. On average, Canadians in Nova Scotia, New Brunswick and Ontario are predicted to pay the most for their education, while those in Newfoundland, British Columbia and Quebec will pay the least.
"As a country and community, we need to do more to help ensure that future generations have all the help they need to succeed in life," continued Andrew. "The $7,200 that families can get in government grants when saving in an RESP is a great start to help bridge the gap. However, with the cost of one year's tuition jumping by 23 per cent in the last 10 years, we may need to consider what else can be done, like increasing the RESP's maximum contribution limit of $50,000, providing further incentives or reducing other common barriers to saving."
Cost of a Four-Year University Degree, By Province
Province |
Ranking of |
Forecast Cost of |
Comparison |
Forecast Cost of |
Forecast |
Nova Scotia |
1 |
$115,263 |
15 % |
$170,715 |
48 % |
New Brunswick |
2 |
$111,971 |
12 % |
$161,400 |
44 % |
Ontario |
3 |
$109,515 |
10 % |
$143,858 |
31 % |
Saskatchewan |
4 |
$106,507 |
7 % |
$150,578 |
41 % |
Alberta |
5 |
$106,129 |
6 % |
$141,179 |
33 % |
Prince Edward Island |
6 |
$101,340 |
2 % |
$139,756 |
38 % |
Manitoba |
7 |
$94,657 |
-5 % |
$133,430 |
41 % |
Quebec |
8 |
$93,723 |
-6 % |
$130,573 |
39 % |
British Columbia |
9 |
$93,378 |
-6 % |
$127,896 |
37 % |
Newfoundland |
10 |
$75,136 |
-25 % |
$105,438 |
40 % |
Canada |
National |
$101,319 |
- |
$137,490 |
36 % |
For more information on specific educational programs across Canada–including tuition costs and program requirements–based on desired occupation, please refer to Embark's new Career and School Matcher.
Leveraging Tools to Get Education Savings on Track
While challenging today, Lo recommends families consider these three tips to help them on their savings journey.
- Be consistent. The key to successful saving is consistency. One of the easiest ways to achieve this is by setting up automatic deposits for yourself. Do not hesitate to adjust your savings amount—whether increasing or decreasing it—at any time based on your current financial situation. Even saving as little as $20 a month can grow into thousands over time. Learn more about how your savings can grow by using Embark's free online RESP calculator.
- Know what you're saving for. The first step in planning to help your child pay for their education is estimating its total cost. Consider what you would like to cover or how much you would like to give them. From there, work backwards to figure out how much you will need to save to meet that goal. Embark's digital platform can help with this by identifying potential costs your child may incur, while helping you define your goals and what you'll pay for.
- It takes a village. While the bank of mom and dad has helped fund post-secondary educations for decades, friends and family are often willing to help too. This holiday season, consider adding RESP contributions to your child's wishlist, giving families a meaningful, lasting alternative to toys and other items they may outgrow. With Embark's new first-of-its-kind RESP gifting feature, loved ones can now play an active role in building a child's future, giving them the freedom to dream big and achieve more.
Click here to view national and provincial data related to the study.
To learn more about how Embark can help you save for your child's education, go to www.embark.ca.
About Embark Student Corp.
Embark is Canada's education savings and planning company. With over $6.4 billion in assets under management, the company is committed to empowering families along their post-secondary journeys by giving them the resources and tools they need to better plan and save for all that comes with an education. Registered as a Scholarship Plan Dealer across Canada, the company manages almost 600,000 RESPs for Canadians nationwide and is expected to help approximately 116,000 students in post-secondary studies this year.
About the Survey
An online survey of 1,012 Canadian parents with children <18 was completed between November 11 and November 18, 2024, using Leger's online panel. No margin of error can be associated with a non-probability sample (i.e. a web panel in this case). For comparative purposes, though, a probability sample of 1012 respondents would have a margin of error of ±3.1%, 19 times out of 20.
About the Educational Cost Forecast
Embark's annual forecast of the educational costs of a four-year university degree is comprised of proprietary data and figures from Statistics Canada. Weighted averages take tuition, compulsory fees, residence and meals, textbooks and supplies as well as living expenses into account. Private and public institution fees are included in these calculations as well as in and out-of-province students for Quebec and Nova Scotia. Residents of these provinces pay lower tuition fees.
SOURCE Embark Student Corp.
Media Contact: Alex Shinnan, [email protected], 204-558-2025
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