Between 2009 and 2020 college fees in Canada doubled. If you want your child to go to college you may be worried about how you’re going to fund it. This is a common concern of many parents and it is something that you should start considering early.
The sooner you start saving for your child’s college education the more likely it is that you will be financially ready when the time comes.
If you have been trying to find ways to save but have been having some difficulties, there are a few solutions that you can try. Here’s a look at some of the best ways to create a child college fund.
1) Open an RESP Child College Fund
One of the best things, you can do is open a Registered Education Savings Plan (RESP) for your child. An RESP savings account is an account that is specially designed for parents in Canada who want to save for their child’s post-secondary education.
With an RESP you decide how much you wish to contribute based on your current financial situation. To open an RESP account you must be a Canadian resident.
You will need to provide your social security number as well as that of your child. After that, you can begin making regular contributions.
The government will also make contributions to these accounts by offering grants for your child’s education.
2) Create a Trust Fund
You may also want to consider setting up a trust fund for your child as this will also go a long way in providing for their tuition. You should contact a lawyer who understands how to set up a trust fund, your lawyer will show you how to save money for your children.
Additionally, a trust fund is a great way to secure your child’s future in case something should happen to you. This is especially important if you have a large estate.
3) Save Automatically
An easy way to ensure that you are saving for your child’s college education is to set up an automatic deduction.
If you are a salaried employee it is a good idea for you to set up automatic withdrawals from your savings account at certain times of the month towards your call child’s college education, you can have those funds go directly into an RESP account.
If you are self-employed you can choose the time of the month that is most convenient for you.
4) Make It a Team Effort
Another thing you can do is make saving for your child’s college education a lot easier is to make it a team effort. If your child has family and friends that usually give them toys or gifts on special occasions such as their birthday or Christmas, you may want to suggest to those people, that they deposit money into your child’s college fund instead.
Adding money in small amounts over time can significantly grow the account.
As your child becomes a teenager they may start doing part-time jobs such as babysitting or cutting people’s Lawns. If they’re doing any kind of work that is giving them an income you should encourage them to put some of what they are earning toward their college tuition.
5) Save Extra Money
Tax refunds can go a long way in helping you to save money for your child’s college tuition. Making a conscious effort to do this every year can result in a big payoff over time.
If you get bonuses at work you may also want to consider placing these in your child’s college education fund. The bottom line is that any type of windfall that you get, can be placed towards your child’s college education fund.
6) Get a Second Job
A second income can go a long way in saving for your child’s education.
Deciding to set aside money that you earn from a part-time job to help your child to go to college is a goal that will pay off over time.
This is especially true if your child is young. Your part-time job can also be used to supplement other things in your household as well.
These days having a part-time job doesn’t have to mean that you have to be away from home. There are several online jobs you can apply for, so you can work from the comfort of your home.
7) Apply for Scholarships
Applying for scholarships is not necessarily a way to save for your child’s college education but it is a way that you can access funds that you normally would not be able to. If your child does well academically they might be able to go to college for free.
Start looking from early at the types of scholarships your child may be eligible for once they reach college age. Keep track of these scholarships throughout the years to find out if all the qualifications for the scholarship are changing. Also, you should find out the type of educational achievement that is necessary for the scholarship.
When applying for scholarships is always better to apply early and your child should apply to as many of them as possible.
Secure Your Child’s Future
You should now have a better idea of how to save for college. Creating a child college fund can go a long way in ensuring that your child gets the education that will take them forward in life.
If you can, start saving for your child’s education as early as possible. This will ensure that when they reach college age they will already have all the necessary funds.
Don’t forget to apply for aid whenever you can. This means that you should keep an eye out for scholarships that are available as well.
If you’re looking to find financial solutions for college or other projects, please do not hesitate to contact us today.