The average Canadian student will graduate from post-secondary will graduate with $28,000 of student loan debt (UFCW Canada).
That is a down payment on a new home.
A car, paid for in cash.
A trip across the world.
As parents, we want the best for our children. Debt is never in our best interest, and as parents there are some simple practical steps to assist your child in their preparation for post-secondary education.
Start Saving Soon!
Encourage your children to find employment as soon as they are old enough. While the age may vary, nine and ten year olds are quite capable of selling cookies to the neighbours or mowing their lawn. Once in high-school, encourage your teens to save a percentage of every paycheck for their post-secondary goals. While they may resent only being able to spend 20% of their paycheck now, they will thank you later!
Expectations
Some families believe strongly in paying for their child’s education, while others believe their children should make their own way. Whatever the case, discuss your expectations not only with your spouse but also with your children.
Are you planning on paying for half of their education? Does this include their rent and food bills? Are you loaning your children money and if so, what is the repayment schedule? All of these things are important details which cannot be assumed.
Students and parents alike suffer when there are unspoken expectations.
Just Listen
Above all, remember this is not the parent’s journey to walk. Your child will not always make good decisions, even with the most excellent role models. Respect them enough to let them make mistakes. Listening to their dreams, desires and fears allows you to better address any unwise decisions. Without understanding your child’s heart, you will never be able to understand their bank account.
Take the time to listen well.
Working, saving, communicating and listening are the most important tools when considering post-secondary education. Once your child is equipped with these tools, the day-to-day financial decisions will not be based on fear but rather a good understanding of where they are and where they want to be.
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