The financial impact of post-secondary education: How an RESP can help your child prepare for cutting-edge careers
With their flexible options, an RESP offers parents a great way to ensure their child has the money needed when it comes time to choose a post-secondary education program
AS THE JOB market becomes more competitive, it’s more important than ever that post-secondary education is just as important now as it was years ago. There are many career fields which require additional education to make sure employees know the knowledge required for the job.
However, with the financial impact of post-secondary education, it can be hard for many people to follow the career they love. In this article, we’ll cover the financial impact of post-secondary education and how RESP can help with preparing your child for cutting-edge careers.
The Rising Financial Costs of Education
Over the years, the cost of post-secondary education has been slowly increasing right around the world. The additional costs aside from the courses themselves are also causing issues for many students who want to follow their dream career. Along with the standard degree fee you need to pay, some other finances which are impacting students are:
- Accommodation: Many students who move away from home need to either stay on-campus or in off-campus accommodation. Both options can be costly, especially when the course you’re enrolled in is over three years.
- Living expenses: Living expenses are also on the rise. Whether it’s utilities, food, or just trying to save money to have for emergencies, it can be hard for students to maintain the incoming funds needed to live comfortably while studying.
- Additional school supplies: In some cases you may have to purchase additional school supplies like a computer, text book, calculator and other necessary items for your degree. These small purchases can prove expensive over time.
- Transportation: If you’re living off campus, the cost of transportation can impact your finances. Depending on the distance you’re traveling to and from the college, you’ll either be paying a lot in bus, taxi or train fees, or you’ll have to spend money on fuel for your car.
These are just some of the ways you may be impacted financially when undertaking a post-secondary education.
The Impact On Future Career Options
With the cost of living and other expenses going up, it can impact the future of your career in fields like bioinformatics, AI ethics and quantum computing. Some of the ways the rising cost of education could impact your future career includes:
- Financial strain can cause you to change careers to a less expensive job. This in turn causes you to give up on the career you love the most and settle for something less exciting.
- Due to the financial pressure of the cost of living, you may decide that a post-secondary education may not be worth it. This can cause you to stop pursuing fields like bioinformatics, quantum computing and AI ethics.
- By not pursuing cutting-edge fields you may lose out on gaining a high paying job, and the industry may lose out on skilled personnel who are needed in these high-demand fields.
Financial strain is one of the reasons why many people don’t pursue their post-secondary education, but it can be avoided.
How RESPs Can Help Fund a Child’s Future Career
As parents we want to ensure our child’s future is taken care of, and an RESP may be the answer to this. Registered Education Savings Plans are designed specifically to help families save for a child’s post-secondary education. Some of the benefits of RESPs are:
- Flexibility: These saving plans offer flexibility in terms of timelines and contributions. You can start them at any age, and adapt to a saving plan that suits your individual savings goals.
- Tax benefits: Any contributions made are tax-free until you withdraw the funds. This means you may be able to save more over time without it being impacted by tax implications.
- Used for a wide range of educational programs: Many RESPs can be used for a number of post-secondary programs including diplomas, degrees, and apprenticeship training. This flexibility allows for families to save for high demand fields without having restrictions.
When it comes to saving for your child’s future career, RESPs are a great starting point to start saving. With their flexible options, RESPs offer parents a way to really help their child from birth to have the money needed when it comes time to choose a post-secondary education program. Always remember to read the fine print before you opt into any saving plan to make sure it’s right for you.