The New School Year will Cost Parents an Average of $705 per Child - And over half the families in Quebec consider post-secondary education to be a significant financial concern

QUEBEC, Aug. 7, 2013 /CNW Telbec/ - As families get ready to raid department stores across the province during the back-to-school season, a recent survey conducted on behalf of Universitas Trust Funds reveals that parents in Quebec spend an average of $705 per child for school supplies and tuition fees - all education levels combined (elementary school to university). The survey also showed that over half the respondents (55%) are concerned by the cost of their children's post-secondary education.

It comes as no surprise that education fees increase as children progress in their schooling. While 52% of parents with children in elementary school report spending on average less than $200 for the school year, it's a whole other ball game for parents with children pursuing vocational studies (DVS): 30% claim to spend between $1,000 and $5,000 for supplies and tuition. In addition, nearly 15% of parents with children pursing university studies expect to spend over $5,000 this year!

Some families understand the importance of saving for the school year. According to the survey, parents save an average of $744 per child. This amount varies depending on the child's specific level of education: 59% of parents with children in elementary school save less than $200, while parents with children in high-school save between $200 and $500 (34%), and between $500 and $1,000 (20%).

For a well-planned post-secondary education, think RESP!

It is estimated that in about twenty years, the cost of a post-secondary education will increase from $75,000 to $140,000¹. Given that 92% of the respondents consider a post-secondary education to be important, it's better to have a financial plan for this reality.

Universitas Trust Funds reminds families that RESPs can be opened for children of all ages and at any time during the year. However, subscribing during a child's early years will result in higher educational assistance payments (scholarships). "We recommend that you open an RESP as soon as your child is born if you wish to maximize the government grants and the returns on your investment. If ever your child chooses not to pursue a post-secondary education, several options are available to you. You may choose to transfer the sums in your RESP to a registered retirement savings plan (RRSP), or to transfer the RESP to another child in the family who intends to pursue a higher education," suggests Ms. Tina Fournier-Ouellet, Senior Manager of Communications & Public Relations, and spokesperson for Universitas Trust Funds.

To consult statistics regarding post-secondary studies cost increase, please click the following link: https://www.universitas.ca/en/education-savings-plans/understanding-resps/why-should-i-save

Choosing the right savings vehicle

Among the respondents who consider the cost of a post-secondary education as either an important or major financial concern, 30% chose to open a savings account save for their children's higher education, while 31% opted for the registered education savings plan (RESP), and 15% chose the TFSA.

As an education savings specialist with nearly 50 years of experience, Universitas Trust Funds emphasizes the importance of post-secondary education accessibility. The foundation reminds parents that RESPs have an important advantage over the TFSA: the generous government grants totalling up to $12,800.³ In addition, the payments received from an RESP can be used to cover both tuition fees and living expenses, regardless of the program of study: vocational, college or university.

About the Survey

The survey was conducted by the CROP survey firm online via a Web panel, from May 15 to 20, 2013. A total of 1,000 questionnaires were completed by Quebec residents. Results were weighted to reflect the distribution of Quebec's adult population based on gender, age, region, language, and the level of education of the respondents.

About Universitas Trust Funds

Established since 1964, Universitas Trust Funds is an RESP industry leader at the service of families across the provinces of Quebec and New Brunswick. The company's not-for-profit structure enables it to concentrate all efforts on providing the highest possible educational assistance payments (EAPs). With the mission to favour the pursuit of post-secondary education through savings and EAPs, Universitas Trust Funds manages nearly $900 million in assets and has paid out over $450 million in EAPs and returned savings to hundreds of thousands of deserving students. To learn more, visit universitas.ca.

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¹ Estimated cost to complete two years of CEGEP and three years of university in Quebec, housing included. Yearly increase of 3% based on the average costs in 2012. Sources: canlearn.ca and Statistics Canada.
² Certain conditions apply; speak to your scholarship plan representative or a financial advisor at your bank.
³ The Canada Education Savings Grant (CESG) rate is 20% to 40%. The Quebec Education Savings Incentive (QESI) rate is 10% to 20%. The Canada Learning Bond (CLB) can reach up to $2,000 for a child born after December 31, 2003 and whose family receives the National Child Benefit Supplement. Amounts based on net family income. Certain conditions apply.

SOURCE: Gestion Universitas inc.

For additional information or to schedule an interview with one of our spokespeople, please contact:

Lydia Juliano     
Matom Communication
[email protected]
514 949-1446

Tina Fournier Ouellet 
Universitas Trust Funds
[email protected] 
418 651-8977, ext. 2320