By the year 2016, it will cost over $70,000 for post secondary education.
Since January 1st, 1998, the federal government provides a Canada Education Savings Grant (CESG) of 20% on each $2,000 invested in an annual Registered Education Savings Plan (RESP) contribution for children up to age 18. The maximum annual grant will be $400 per child. This could equal a total of $7,200 by the time they turn 18.
If you have children, you need to know this NOW. Not 18 years from now.
University tuition in Canada increased by 159 % over the last 10 years. * Tuition, rent, books and food cost over $8,890** for one year of undergraduate studies. Assuming an annual inflation rate of 3%, a four-year degree 18 years from now will cost about $70,000.
* Statistics Canada. Based on years 1987-88 to 1997-98.
** Canadian Federation of Students. Student Budget 1995-96.
The following table illustrates an annual contribution of $2,000 by the parents, grand-parents and/or interested Canadians plus $400 from the government assuming certain return on investments.
| Years of | Present age | Annual | Monthly | Plus | Cumulative | |||
| contributions | of child | contributions | contributions | C.E.S.G. | investments | based on |
annual | contributions |
| 5% | 7% | 10% | ||||||
| Newborn | 17 | $2,000 | $167 | $400 | $2,400 | $2,520 | $2,568 | $2,640 |
| 1 | 16 | $2,000 | $167 | $400 | $4,800 | $5,166 | $5,316 | $5,540 |
| 2 | 15 | $2,000 | $167 | $400 | $7,200 | $7,944 | $8,256 | $8,738 |
| 3 | 14 | $2,000 | $167 | $400 | $9,600 | $10,862 | $11,402 | $12,252 |
| 4 | 13 | $2,000 | $167 | $400 | $12,000 | $13,925 | $14,768 | $16,117 |
| 5 | 12 | $2,000 | $167 | $400 | $14,400 | $17,141 | $19,370 | $20,369 |
| 6 | 11 | $2,000 | $167 | $400 | $16,800 | $20,518 | $2,224 | $25,046 |
| 7 | 10 | $2,000 | $167 | $400 | $19,200 | $24,064 | $26,347 | $30,191 |
| 8 | 9 | $2,000 | $167 | $400 | $21,600 | $27,787 | $30,749 | $35,850 |
| 9 | 8 | $2,000 | $167 | $400 | $24,000 | $31,696 | $35,481 | $42,075 |
| 10 | 7 | $2,000 | $167 | $400 | $26,400 | $35,801 | $40,532 | $48,922 |
| 11 | 6 | $2,000 | $167 | $400 | $28,800 | $40,111 | $45,938 | $56,455 |
| 12 | 5 | $2,000 | $167 | $400 | $31,200 | $44,637 | $51,721 | $64,740 |
| 13 | 4 | $2,000 | $167 | $400 | $33,600 | $49,389 | $57,910 | $73,854 |
| 14 | 3 | $2,000 | $167 | $400 | $36,000 | $54,378 | $64,531 | $83,879 |
| 15 | 2 | $2,000 | $167 | $400 | $38,400 | $59,617 | $71,617 | $94,907 |
| 16 | 1 | $2,000 | $167 | $400 | $40,800 | $65,118 | $79,198 | $107,038 |
| 17 | Newborn | $2,000 | $167 | $400 | $43,200 | $70,894 | $87,310 | $120,382 |
| Totals | $36,000 | $7,200 | $43,200 |
For additional information, please contact us or e-mail us at gennaro@serfinnatale.com