Given the numbers we looked at from Stats Canada yesterday you need to ask yourself, just how much is this all going to cost and how can I deal with University Costs?
Let’s run down some of the expenses you are going to need to remember are part of the entire “going to University” equation:
- Cost of Tuition (which varies depending on the school gone to, and the faculty in that school as well).
- Service Fees, some of these you cannot hide from and you need to remember they are there.
- Books and Lab Fees, not expenses you can hide from (you can try to lower them by getting used books or buying them where they are cheaper).
- Living expenses (if the child lives away from home), which could be either a residence and food plan, room and board if they rent a room off campus, or Rent and living costs if they live in an apartment-like model.
- Moving costs, if they leave home (especially if they are going a LONG way away).
- Computing costs, if they don’t already have a computer
- Back to school supplies, paper, printers, etc., etc., etc.,
- Coming home money
- Everyday living money
First, you need to ask, “Am I going to pay this, or am I going to leave it up to my kids?”. In my discussions previously many of my readers have pointed out they didn’t have their education paid for, nor do they plan to pay for their kids’ education. This is an option for a lot of people (and the only option for some folks too). If you don’t plan on footing the bill, then I guess you don’t need to worry about this.
If you are planning on paying for this, how are you going to save? Will you use the RESP savings vehicle? Maybe use your TFSA for extra saving? Get your kid to get a job while at school to help out (so they appreciate the cost of their education)? Hope to win the lottery? Sell a kidney on e-bay? All interesting ways to save for the financial onslaught that University costs can be.
University Costs for More than One ?
Are you going to have multiple kids at University at the same time? That makes saving doubly important (and you better put twice as much away, at least).
Co-op education for your kid? That way they earn their way through school and it is less of a burden on you?
Nobody moves out, the kids go to school locally and live at home. That saves a WHOLE LOT of money, but then again, you have another Adult in your house, which may cause other issues, but that can cut your University bill in half, if the kids live at your place (but then, how do you get them to move OUT once they have a degree?).
Planning for this orgy of spending can cause your hair to turn prematurely grey, however, it will help you out in the long run.