The Impact Rising Tuition Fees Are Having On Canadian Families
Every September, around a million students across Canada embark on another year of university or college education. Yet, behind each of these students is a rising tuition cost that leaves many students (and their parents) facing enormous debt in the pursuit of their dream careers.
In the 2018/2019 school year, the average annual cost of tuition fees for an undergraduate course was $6,822 - the 28th consecutive year fees had increased. These costs only increase further for more specialist subjects, with medicine costing an average of $14,444 a year and Law $13,642.
These astronomical costs are having a number of significant effects on families across Canada:
While costs are already incredibly high, they are showing no signs of slowing down either. An Actuarial Report by the Office of the Superintendent of Financial Institutions Canada in 2011 estimating that by 2035, the average cost of a standard four-year university degree will cost $152,000.
2.Having to work longer
The steady year on year increase in tuition fees has not followed in line with the cost of inflation. In 1990, the average two-parent, middle-income family was required to work 87 days in order to earn the equivalent fees of a standard four-year tuition – however, nowadays, it is over double that.
This situation only becomes worse for lower-income families, whereby they are required to work for nearly two years to earn the equivalent of the cost of a four-year degree. This is forcing parents to work long hours just to help their children enjoy the best possible future and pursue their dream career.
Less time together:
With parents having to work long hours, it means they are spending significantly less time with their children. This lack of quality face-to-face time with their loved ones prevents them from creating lifelong cherished memories.
2. Less disposable income:
With the cost of further education only going to be increasing, it has meant that parents are experiencing less disposable income than their parents did. This means that they have less money to enjoy family activities such as going on holiday, visiting attractions, or simply going out for dinner
What can families do?
As the cost of further education has risen, various provincial governments have stepped in to provide some support. These include services such as the Canada Education Savers Grant (CESG), Registered Education Savings Plans (RESP), and the Canada Learning Bonds (CLB).
However, while these are certainly some benefits to families, they do not provide enough support. In addition to that, the actual process for applying for these grants can be very complicated to navigate, leading to many families confused about how to secure support.
This means parents need to find a new frontier to address this ever-changing landscape, allowing them to plan for the future and ensure their child’s further educational needs are covered. Working with a trusted financial advisor can help you break through these challenges and give your child the very best opportunities in life.
At NWR Financial Group, our goal is to bring our clients financial security and prosperity. If you are want to safeguard your financial future, find out more by visiting our website www.nwrfinancialgroup.com or get in touch with us today on firstname.lastname@example.org.