How much should you contribute to your child’s education?

October 12, 2017

According to a May 2017 Globe and Mail Report average university/college tuition in Saskatchewan is over $7,000/year but you need to also factor in living expenses, books etc. And if your child is just starting kindergarten, it is not easy to predict how costs will escalate over the next decade or more.

Many parents wisely take advantage of the tax breaks and grants available by saving in Registered Educational Savings Plans. But they also expect their kids to contribute to the cost of their post-secondary education by applying for scholarships, working part-time and taking out student loans.

Therefore it is interesting to note the results of a recent poll conducted on behalf of RBC® that found students who receive less than one-quarter of their funding from parents feel more confident in their financial decision-making and are more likely to make and stick to a budget compared to their peers who receive more family financial support .

Students whose parents contribute less than 25% Students whose parents contribute 25% or more
I feel confident in my financial decision making 50% 41%
I make a budget and stick to it 42% 33%


Expectations after school
Students receiving more financial support not only have more expectations of parental assistance during school but are twice as likely to expect some help from their parents post-graduation (21% compared to 11%).

“While contributing financially to your child’s education is a wonderful gift, being clear on expectations from both parties is really important. Make sure you discuss the ‘terms’ including when financial support will end,” says Laura Plant, RBC Director, Student Banking

Tips for Parents

  1. Have “the talk”: Start talking about budgeting and money management with your child early on. The earlier you get the conversation started, the more prepared everyone will feel when it comes time to start paying for tuition and other expenses. The transition to post-secondary education is significant – reducing money stresses is one way of easing the change.
  2. Start saving early: If you plan on contributing to your child’s education, save early and save often. One way of getting started is by opening up a Registered Education Savings Plan.
  3. Set the expectations: If you plan on contributing to your children’s post-secondary education, set the expectations on what you will contribute and what you expect them to contribute. Getting everyone on the same page is an important first step.

Tips for Students

  1. Don’t leave free money on the table: No matter how you are funding your education, there are lots of resources out there to help you access free money, including scholarships. Resources such as and will help you on your journey to free money.
  2. Save, Save, Save: Develop a habit to save on a regular basis. No matter how small the amount, saving can help you achieve your short and long term financial goals – whether it’s paying for tuition, rent or saving up for a reading week vacation. Let your money work harder for you by setting up automatic transfers from your daily chequing account into a separate high-interest savings account or guaranteed investment certificate to be used towards your goals.
  3. Talk to an expert: Let’s face it, as a post-secondary student (or soon to be student), you have a lot on your plate. Speak with a financial advisor on how to start saving and what options make the most sense for you and your family. This will help set you up for success.

We contributed to our childrens’ university education using RESP savings and current earnings. While I didn’t keep track of how much we gave them or what percent of their educational expenses we covered, they were able to graduate from their first degrees debt free.

Both kids also have Masters degrees and took post-graduate professional college programs which they self-financed. My son had scholarship money and my daughter worked for a major public sector union that paid for her tuition as she successfully passed each course.

I am quite confident that the financial lessons they learned living on a student budget and helping to support themselves were just as important to their future success as the programs they formally studied at university.

Written by Sheryl Smolkin
Sheryl Smolkin LLB., LLM is a retired pension lawyer and President of Sheryl Smolkin & Associates Ltd. For over a decade, she has enjoyed a successful encore career as a freelance writer specializing in retirement, employee benefits and workplace issues. Sheryl and her husband Joel are empty-nesters, residing in Toronto with their cockapoo Rufus.

Stay at home or go away to school?

August 22, 2013

By Sheryl Smolkin


There are many pros and cons to weigh if you are still debating whether to attend college or university in your home town or go away to school. A crowded, messy dorm room and doing your own laundry for the first time may seem like a small price to pay for your independence.

However, the real cost of leaving home prematurely could be a huge debt that takes years to pay off. A March 2013 report from BMO’s Wealth Institute says that tuition and other costs for a four-year university degree now can cost more than $60,000. Due to tuition inflation, this amount could rise to more than $140,000 for a child born in 2013.

Of course, if there is no college or university in your hometown or you are interested in a program that is not offered locally, staying at home may not be an option. Regardless of what your decision is, here are some ideas for students who want to trim their expenses to avoid leaving school with a huge debt.

  1. Scholarships: Apply for scholarships or bursaries. The selection criteria are not always based solely on high grades. You can find out what scholarships are available from the school you plan to attend and websites like and
  2. Accommodations: To get the true “college” experience you may want to live in residence on campus for at least the first year. However, it may be less expensive to share an apartment with one or more roommates and prepare your own food. If grandma or another close relative lives in the town where you plan to study, consider asking if you can board for a nominal amount.
  3. Trade services for a room: One single Mom I know is training to be a midwife, so she is frequently on call at night and on weekends. Her tenant gets free rent for helping her with child care outside of normal daycare hours. Similarly, an elderly homeowner may be willing to offer free or cheap accommodation if you agree to help out with yard work, shovelling snow and buying groceries.
  4. Get a job: Get a part-time job and a summer job to defray current expenses and save money for the next semester’s tuition. Some schools have work/study programs and offer students on-campus work. While it would be nice to get work in the field you are training for, take what you can get and don’t be afraid to get your hands dirty.
  5. Take a reduced course load: If you take fewer courses over a longer period, it may be easier to balance school and a part-time job. Also, your annual tuition expenses will be lower.
  6. Choose a co-op program: Co-op programs typically require that students work in a relevant business or industry for several semesters a year. Co-op terms are generally unpaid, but employers participating in these programs frequently hire successful students for paid summer work and jobs after graduation.
  7. Enroll in online courses: The Centre for Distance Education offers distance education for Saskatchewan residents. You can get distance degrees including undergraduate programs and a highly rated Executive MBA from Alberta’s Athabasca University. Many of these courses can be applied towards your degree or a diploma at another institution, reducing the time it takes to complete your program.
  8. Check your employee benefits: If you are planning to go back to school part-time, check your employee benefits. Many enlightened employers will pay all or part of tuition once you satisfactorily complete the program. Generally, but not always, the course must relate to skills needed to do your job.
  9. Join the military: Enroll in the Canadian Armed Forces through the Regular Force Officer Training Plan (ROTP) and you will receive free university tuition, books and academic equipment in addition to a salary with benefits. You can attend the Royal Military College or an approved Canadian university. Finally, you will have a guaranteed job upon graduation.

    In return for having your university education paid for, you will have to serve between 36 and 48 months, calculated on the basis of two months’ service for each month of subsidized education.

  10. Live frugally: A student loan, the proceeds of your summer earnings and an allowance from your parents (if you are lucky) will have to last for the whole term. Figure out what you can afford to spend and stick to your budget. If you have a credit card, don’t use it unless you can afford to pay it off every month. Remember that the credit rating you generate now will follow you into the workforce and can affect your ability to buy a home or a car in future.

Do you have tips for students deciding whether to go away to school or study at a local college? Share your tips with us at and your name will be entered in a quarterly draw for a gift card. And remember to put a dollar in the retirement savings jar every time you use one of our money-saving ideas.

If you would like to send us other money saving ideas, here are the themes for the next three weeks:

29-Aug College/University Credit card options for your college kid
05-Sept College/University What kinds of insurance does your child need?
12-Sept Kid’s allowance How much and what your children have to do to get an allowance?