Canadian students can expect to pay more for tuition and residence next year, with the average cost rising to just over $75,000 for a four-year degree, according to an educational think tank.
Canadian RESP company Embark said in its forecast report that costs will be up for a four-year university degree beginning in September and that parents of generation alpha children will have to begin preparing to pay six-figures for post-secondary education soon.
“Post-secondary education is one of the most substantial investments Canadians can make towards their future, but it can also lead to a distressing financial burden,” said Andrew Lo, CEO and President of Embark.
“Given that the cost of education has historically outpaced inflation, it is vital for parents and students to not underestimate the associated expenses, and proactively plan for savings at the earliest opportunity to avoid sticker shock when the time comes.”
The group estimates an average cost of $75,000 and projects that figure to increase by 39% over the next 18 years, climbing to $104,898 by 2041.
Students who attend schools in Ontario, Nova Scotia, New Brunswick and Saskatchewan are likely to hit this benchmark far sooner, potentially within the next 11 years.
“Canadians in these four provinces are also expected to pay the most, with those in Nova Scotia and Ontario having to pay an average of $88,490 and $86,106, respectively,” reads the report.
“This is more than $10,000 greater than the national average. On the other end, students in British Columbia ($68,495), Manitoba ($67,934) and Newfoundland ($54,366) are estimated to pay the least.”
When asked, however, 31% of Canadian parents told Embark that they would not be able to guess what post-secondary education currently costs.
Those who did guess were far below the reality, estimating a four-year program to cost “$62,067 when factoring in all expenses, which is below the estimated average cost for 2024 in nine of the ten provinces – and over $10,000 off from the national average,” said Embark.
The group also noted that many Canadian families are unaware of government grant money that is available to them under the Canada Education Savings Grant, which matches 20% of what you contribute to an RESP annually.
“In order to maximize education savings, it’s important to leave no stone unturned. We saw that less than half of parents know about the CESG, which means most Canadians are missing out on government money that they are entitled to,” said Lo.