Let me preface this, that this is a Guest Post from a group of chaps I tripped over a while ago. Sounds like an interesting idea to me teaching folks about the costs of University, they are looking for feedback, have a read and see what you think.
Feels like cheese
by Alfred Yang
For those of you who lived through the 90’s, remember that old Cheese Whiz commercial where kids are reluctant to eat their vegetables until they’re garnished the amazing product? Well, that commercial kept replaying in my head as I worked on Proliteracy.ca, a free tool that helps Canadians plan finances for post-secondary education.
I can’t help but get the feeling that personal finance education is a lot like vegetables. We all know it’s good for you, but it isn’t that appealing, especially to young people. I feel like our team at Proliteracy.ca is trying to create the secret sauce that makes something dry and boring more consumable.
Fortunately, from the start of our journey we’ve met many organizations and individuals who share the same passion for promoting financial literacy. Subject matter experts in the field of personal finance, like Big Cajun Man, gave us the motivation to continue our work. Today, Proliteracy.ca is available to all Canadians looking to understand post-secondary financing.
The secret sauce?
Despite the rapid evolution of financial technology, it has yet to change the way most consumers educate themselves about personal finance. The internet gives us incredible access to information, but it can be overwhelming. The Proliteracy.ca team wanted to find a way to help people filter through the noise to focus on what’s really important to their own situations.
Our team wanted to start by helping students and young parents, a demographic that is arguably the least motivated to learn about personal finance. Ironically, most members in this very same demographic have a major financial hurdle to overcome – financing post-secondary education. Tuition has been increasing steadily in the past two decades and according to the Canadian Federation of Students the average new grad from university owes over $28,000 in student debt.
Through extensive research, we found plenty of information on financing post-secondary education, but when considering our own personal situations, a number of questions still remain unanswered:
- If I have a young child today, how much should I be saving towards?
- How does studying in a different school or different city impact my cost?
- How much money should I set aside each month so that I am not too late by the time my child is ready for college?
- Beside savings, what other financing options are available?
- How does borrowing impact my child’s financial future?
Proliteracy.ca aims to help forecast the cost of education based on each student’s personal situation. We do the heavy lifting to organize data that’s freely available so that it’s more accessible and easier to understand.
First, we prompt you to answer a few questions, including programs and schools of interest, and the year of enrollment. Then we forecast the cost of tuition, books, and other expenses based on historical data. The end result is a good estimate of the financial target you or your family should be aiming for when planning for post-secondary education.
With an understanding of cost, we’re able to suggest a variety funding options starting with the least expensive options: savings, grants and scholarships. We build awareness to great federal programs like the Canadian Learning Bond (CLB) and Canadian Education Savings Grants (CESG) and highlight the impact they have on RESP savings. We also perform grants and scholarships matching, allowing families to take advantage of resources that are otherwise unknown to them before taking on debt.
Eat your vegetables, they’re good for you
In October, we ran a pilot program at three different high schools in the Greater Toronto Area. We found that students and many young parents are generally not motivated to learn about personal finance. Most are not prepared for the high cost of post-secondary education. Tuition is increasing well beyond the rate of inflation, and a child’s college or university education a decade from now could easily set a family back by over six figures. Most individuals we spoke to admit that they are planning finances for post-secondary education too late.
Like eating vegetables, financial planning needs to start early in life. When confronted with a significant financial hurdle like cost of post-secondary education, families need to get into the rhythm of saving, learning about funding options and understanding the implications of debt.
We need your help
Since our pilot launch, we’ve received a lot of encouragement and feedback on how we can improve. While our team is making great strides towards creating an amazing planning tool, we can get there a lot faster by working with individuals and organizations who share the same passion for financial literacy.
So, if you have any feedback at all, we’d love to hear from you.