For many parents, helping their child attend college, university or trade school is one of the biggest financial goals they’ll ever face. While earning a post-secondary education can open doors to new opportunities, the cost of tuition is only one piece of the puzzle. Housing, textbooks, transportation, meal plans, technology and everyday living expenses can add thousands of dollars to the total bill each year.
The thought of paying for it all can feel overwhelming—but it doesn’t have to. Whether your child is still in elementary school or preparing to graduate high school, thoughtful planning can help you support their education without putting your own financial future at risk.
Here are some practical ways to prepare for the cost of higher education without panicking.
Start saving as early as you can
The biggest advantage parents have is time. Even modest monthly contributions can grow significantly over the years thanks to compound growth.
If your child is still young, consider setting up a dedicated education savings account and contributing what you can on a regular basis. Don’t worry if you can’t save large amounts—consistency is often more important than the size of each contribution.
If your child is already in high school and you haven’t started saving, don’t assume it’s too late. Every dollar you save now is one less dollar you’ll need to borrow later.
Take advantage of government education savings programs
One of the best ways to save for your child’s education is through a Registered Education Savings Plan (RESP). Not only do your investments grow tax-deferred, but the federal government also helps your savings grow through the Canada Education Savings Grant (CESG).
The CESG matches 20% of your annual RESP contributions, up to a maximum grant of $500 per year. Over your child’s lifetime, the grant can total up to $7,200 per child—money you don’t have to earn yourself or pay back.
To receive the maximum annual grant, you would need to contribute $2,500 per year per child, which works out to about $210 per month. Breaking it down into a monthly contribution makes the goal feel much more manageable for many families.
While contributing $210 each month may not be possible for everyone, saving what you can is still worthwhile. Even smaller contributions may qualify for partial grants, and some families can catch up on unused grant room in future years.
The real power of an RESP comes from combining government grants with long-term investment growth. For example, if you contribute $210 per month from the time your child is born until they turn 18, and your investments earn an average annual return of 6%, you could accumulate more than $90,000 for your child’s education. Of that amount, approximately $45,000 would come from your contributions, $7,200 would come from the federal government through the CESG, and roughly $38,000 would come from investment growth.
That’s a powerful example of how starting early allows both your own savings and government grants to compound over time.
Even if your child is already older, it’s not too late to start. Every contribution—and every grant dollar you receive—can help reduce the amount your child may need to borrow for post-secondary education.
Remember that tuition is only part of the cost
When families estimate the cost of post-secondary education, they often focus on tuition. In reality, many students face additional expenses that can equal—or even exceed—their tuition.
These costs may include:
- Residence or rent
- Meal plans or groceries
- Textbooks and course materials
- Laptop computers and software
- Transportation
- Cell phone bills
- Clothing
- Personal care items
- Recreation and social activities
Creating a realistic annual budget before your child begins school can help prevent financial surprises later.
Encourage scholarships, grants and bursaries
Many families assume financial aid is only available to students with exceptional grades or financial need. In reality, thousands of scholarships, grants and bursaries go unclaimed each year because students simply don’t apply. Even smaller awards can help offset the cost of books or other school expenses.
Encourage your child to:
- Apply early.
- Apply for multiple awards.
- Look beyond large national scholarships.
- Check local community organizations, employers and volunteer groups.
- Continue applying throughout their post-secondary education, not just before first year.
One opportunity for students in Atlantic Canada is the John Eisner Financial Literacy Scholarship, offered annually by SolveYourDebts.com. Each year, several $1,000 scholarships are awarded to post-secondary students, and since 2004, the organization has provided more than $234,000 in scholarship funding.
The scholarship encourages students to develop the financial knowledge and skills needed to minimize post-secondary debt, use credit responsibly and build a strong financial future.
Talk about expectations before school starts
One of the best financial planning tools is an honest family conversation. Before your child accepts an offer of admission, discuss questions like:
- How much can the family realistically contribute?
- Will your child work part-time during school?
- Who will pay for housing, food and transportation?
- Are there limits on discretionary spending?
- What expenses will your child be responsible for?
Setting expectations early helps avoid misunderstandings and reduces financial stress for everyone.
Help without sacrificing your own financial security
Many parents feel pressure to do everything they can to fund their child’s education. While supporting your child is admirable, it’s important not to jeopardize your own financial well-being.
Avoid:
- Taking on debt you can’t comfortably repay.
- Draining your emergency fund.
- Withdrawing retirement savings prematurely.
- Co-signing loans without understanding the risks.
Remember, there are loans available to help students pay for school. There are no loans available to fund your retirement. Your long-term financial stability matters too.
Teach financial skills along the way
Post-secondary education is often a student’s first experience managing money independently.
Parents can help prepare their children by teaching practical skills such as:
- Creating a monthly budget.
- Tracking spending.
- Using credit responsibly.
- Building an emergency savings fund.
- Understanding student loans and repayment obligations.
- Comparing wants versus needs.
These lessons can help students avoid unnecessary debt while building healthy financial habits that last long after graduation.
Explore ways to reduce costs
There are many ways students can lower the overall cost of earning a degree or diploma.
Some options include:
- Living at home if feasible.
- Buying used textbooks or digital editions.
- Taking advantage of student discounts.
- Using public transit.
- Sharing housing with roommates.
- Working summer jobs to save for the upcoming school year.
- Completing transferable credits through lower-cost institutions before moving into specialized programs.
Small savings in several areas can add up to thousands of dollars over the course of a degree.
Don’t compare your family’s situation to others
It can be easy to feel discouraged when you hear about families who have fully funded education savings or can pay tuition without hesitation.
Every family’s financial situation is different. Your goal isn’t to pay for everything perfectly—it’s to make thoughtful decisions based on your own circumstances.
Supporting your child’s education may look different from someone else’s, and that’s okay.
Education is an investment—not a race
Preparing for post-secondary education doesn’t require perfection. It requires a plan.
Whether you’re saving a little each month, helping your child apply for scholarships, encouraging part-time work or simply having open conversations about money, every step you take today can reduce financial stress tomorrow.
If you’re concerned about balancing education costs with other financial priorities, such as paying down debt, saving for retirement or managing household expenses, a qualified credit counsellor can help. Together, you can create a realistic financial plan that supports your family’s goals while protecting your long-term financial health.
