Cough Up the Cash: Can You Pay Tuition?

A new report out by TD Canada Trust was reported on in Academica Group this morning: Academica Group discusses how parents plan to help their kids pay for university tuition.

And recently, Macleans magazine reported that the idea that tuition costs are rising is a myth. It’s a typical economist sleight-of-hand story: tuition costs are actually rising, but other costs are going down and there are other helps out there to reduce the cost so it’s really not costing you more. In my opinion, the myth is the Macleans article.

The point is, tuition costs are going up. Federal and provincial universities used to fund public post-secondary institutions up to 87% of their operating costs in 1986, whereas today it is only 60%. Student tuition now has to cover approximately 40% of the cost of operating a university.

No wonder tuition is rising. And Canadians haven’t woken up to this fact yet.

My US friends and family have made the adjustment. Many of them started saving for their children’s education before they even had children.

Hello Canadians! Wake up and smell the cost! Start saving now. And do it wisely. Your kids may or may not go to university, but these savings could go towards giving them a start in business or trade school.

How are you planning to help pay for your kids education? My kids (I have three teens) have jobs and we have a forced savings plan set up for them.

Please pass this along to any parents you know and encourage them to start saving now.

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