REPEAT-BMO: Only One-Third of All Canadian Students Have an RESP

REPEAT-BMO: Only One-Third of All Canadian Students Have an RESP 
- Three-quarters of students with an RESP say that they would not
have been able to afford university or college without one 
- Eighty-four per cent of students without an RESP wish they had one 
- Four-year university degrees can cost more than $60,000; costs
could rise to $140,000 for a child born in 2013(i) 
TORONTO, ONTARIO -- (Marketwired) -- 09/05/13 -- With students of all
ages starting school this week, a study by BMO Financial Group issued
today has found that - despite the rising costs of post-secondary
education - only one-third of Canadians currently enrolled in a
post-secondary program have a Registered Education Savings Plan
(RESP) to help cope with the costs of tuition, books and room and
board. 
The study also found that three-quarters of students who had an RESP
in place say it would not have been possible for them to afford
post-secondary education without one. 
A four-year university degree can cost upwards of $60,000 including
tuition, room and board, books and spending money. For children born
in 2013, costs could reach $140,000 by the time they attend a
post-secondary institution.(i) 
"The costs associated with attending university or college are rising
substantially, so there is significant value in opening an RESP for
your child well before he or she heads off to school," said Robert
Armstrong, Vice President, Managed Solutions and Registered Plans
Strategy, BMO Asset Management Inc. 
Student Regrets and Lessons Learned 
The study also found that: 


 
--  Eighty-four per cent of Canadian students without an RESP wish they had
    one. 
--  An overwhelming 91 per cent of those without an RESP say they will set
    up an RESP for their own children to make it easier to afford post-
    secondary education. 

 
"A little goes a long way when you save for your child's education
through an RESP. Compounded return and government grants can yield
considerable savings by the time a child turns 17 years old," added
Mr. Armstrong. "It's encouraging that so many younger Canadians are
acknowledging the helpful role an RESP will play when it's time for
their own kids to head off to universities and colleges." 
Government Grants Are Key 
One of the key advantages to opening an RESP is the government
matching program. The first $2,500 in RESP contributions per year
receives a matching 20 per cent Canada Education Savings Grant from
the federal government, which can be as much as $500 annually.  
"Not taking advantage of the government grant is like leaving free
tuition money on the table," concluded Mr. Armstrong. "Even
contributing as little as $500 per year to an RESP from the time a
child is born could result in more than $20,000 saved by the time the
child enters college or university. By combining a grant with what
you're already depositing to the RESP, you can make your savings grow
substantially." 
To learn more about saving and RESPs, please visit: www.bmo.com/resp. 
Get the latest BMO press releases via Twitter by following @BMOmedia. 
Regional Data 


 
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                                             Total ATL  QC  ON MB/SK  AB  BC
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Students who have an RESP (%)                   36  33  24  39    35  40  47
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Students who wish they had an RESP (%)          85  84  82  85    92  80  92
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Students who intend to set up an RESP for                                   
 their children (%)                             93  91  90  94    92  93  95
----------------------------------------------------------------------------

 
Survey results are from an online Pollara survey with a sample of 602
Canadian post-secondary students, conducted between July 22nd and
July 25th, 2013. Survey participants are all enrolled in a Canadian
post-secondary institution for the Fall of 2013.  
(i)Education costs include tuition and a single residence room with
meals and books, from the BMO Education Savings Calculator
Contacts:
Media Contacts:
Amanda Robinson, Toronto
416-867-3996
amanda.robinson@bmo.com 
Valerie Doucet, Montreal
514-877-8224
valerie.doucet@bmo.com 
Laurie Grant, Vancouver
604-665-7596
laurie.grant@bmo.com
 
 
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