When it comes to funding post-secondary education, parents and their teenage children need to have a financial plan in place that addresses everything from tuition costs and financial aid to money management for students.
Five tips for parents
Do your homework
Parents need to assess their finances to establish which colleges and post-secondary programs are within the family’s budget and whether or not they’ll need to pursue financial aid. Is there a Registered Education Savings Plan (RESP) already in place? If so, great; if not, there might still be advantages to setting one up—contact the Dri Financial Group for more information.
Game plan with your family
Open and effective communication is essential when planning for college or university. Make sure your children understand all the costs involved and if they will be playing a role in helping to fund their education—whether that means taking on student loans or part-time work during their schooling.
Look for free money
Scholarships, grants and bursaries are types of financial assistance that you don’t have to pay back. Scholarships are typically based on merit, while grants and bursaries usually consider financial needs as well. Check with your child’s prospective school to find out what you could be eligible for, and visit sites like www.scholarshipscanada.com to explore available funds.
Explore government loans
If available scholarships and financial aid can’t cover all your funding gaps, it might be necessary to consider a student loan. For more information, visit the Government of Canada Student Financial Assistance website www.canlearn.ca.
Be realistic
You want your child to have the best possible education to ensure a successful start in life. However, it’s important not to put your finances at risk to fund your child’s schooling. Be willing to explore other money-saving options, such as living at home instead of on campus.
Six money-management tips for students
Many university students run short of funds before the end of their school semester. Here are some tips to help ensure you spend your money wisely.
Track your spending
Where does all your money go? One way to find out is by writing down everything you spend money on – from textbooks and tuition to takeout food and lattes. You’ll be surprised at how little expenses add up. Learning how to budget is essential for students to master as they begin life away from home.
Use cash
Studies have shown that using cash instead of a debit or credit card can reduce discretionary spending. While tapping your card is quick and easy, it can contribute to unnecessary expenses.
Avoid buying new textbooks
Purchasing textbooks can take a big bite out of your budget. Instead, explore the various options such as e-versions or renting textbooks online.
Consider online classes
Online classes are an extremely cost-effective way to catch up and graduate on time or early. Avoiding an extra year (or even semester) of tuition, room, and board could be a financial lifesaver.
Late riser? Change your meal plan
If you never make it to breakfast, don’t buy the school’s three-meal plan. Instead, opting for the two-meal plan could save you hundreds of dollars each semester.
Consider refinancing school debt
Government loans don’t always offer the best terms. Always look for opportunities to refinance your university debt at more favourable rates.
Contact the Dri Financial Group to find out what options are available.
source https://richarddri.ca/preparing-for-post-secondary-education/
Dri Financial Group 