Location: Western Hemisphere
Posted on: 05-05-14 11:28:18
Quoting from another thread.....
<i>"how About talking about interesting topics like expensive higher education, school drop outs and depression and children leaving home at young age and shelter and drugs and hanging with bad crowds, which according to me is serious issues coz both parents are working and unable to gv qualitative time to their children. This is all over the world so, I feel let us educate ourselves how to handle such serious issues.??"</i>
How are you preparing for your child's expensive post-secondary education in Canada?
It is estimated from several obscure and good websites that a University education is estimated to cost upwards of $250,000 for tuition, fee, books, and boarding.
Of course, if your child earns a scholarship or commutes from home, the cost certainly comes down.
Please DO NOT make this a Canada vs. India thread.
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Dimple2001
Quote:
Originally posted by dimple2001
Quoting from another thread.....
How are you preparing for your child's expensive post-secondary education in Canada?
It is estimated from several obscure and good websites that a University education is estimated to cost upwards of $250,000 for tuition, fee, books, and boarding.
Of course, if your child earns a scholarship or commutes from home, the cost certainly comes down.
Please DO NOT make this a Canada vs. India thread.
Oh this may turn into what is better investment forum if not India Vs Canada...
Honestly it is difficult to balance between savings for future Vs current Sacrifices
In other words, if I have to achieve goal of 250K per child, not sure if I should cut on taking them (and us parent as well ) to places/vacations or Restaurants.
The investment for education, should it be RESP or something like real estate, stock market, gold etc.
I am taking an approach where I know that I cannot support 100% of their college cost ...buggers should bust their bums either to earn scholarship or to get a PT job while getting excellence in education. I will be supporting them by cutting some of my luxurry such as getting Red label even if I could afford Blue label
. The problem with first generation Desis is also that their vacation cost of couple of years or more goes down the drain every time theyvisit India for one reason or other. So kids will keep blaming us that we never took them on vacation or very little if we did.
Also it brings the question of how much are you going to save for retirement? so if you somehow managed to save $250K per child, what will you have for retirement? Babaji ka Thullu? Similar to what we are doing, they will enjoy their life on a diffferent continent/private isalnd and we struggle here on OAS? (yeah I expect them to earn at least to own private island if we sponsor their full education with $250K).
Rahul sirji take it from here..I know you have well balanced portfolio.
Children education, is perhaps the most important topic that runs in parents.
See that dimple brought up the figure of 250K with reference to some websites, It did send some tremor inside. Hope it is not about attending
1. one of those out of resident.
2. Ivey league schools
3. Education such as Medical, Dental.
For kids attending UFT, Ryerson, Waterloo. I guess the Fee is about 15K / year, consider they stay close to campus in a shared apartment (2 bed, 4 students in my friend's case), it would add up another 18K (1.5K X 12) adding up to 30-35K. Summing it up for 4 years excluding breaks, it could run easily up to 100K as of today. I am open for comments..
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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
Quote:
Originally posted by JRF
Children education, is perhaps the most important topic that runs in parents.
See that dimple brought up the figure of 250K with reference to some websites, It did send some tremor inside. Hope it is not about attending
1. one of those out of resident.
2. Ivey league schools
3. Education such as Medical, Dental.
For kids attending UFT, Ryerson, Waterloo. I guess the Fee is about 15K / year, consider they stay close to campus in a shared apartment (2 bed, 4 students in my friend's case), it would add up another 18K (1.5K X 12) adding up to 30-35K. Summing it up for 4 years excluding breaks, it could run easily up to 100K as of today. I am open for comments..
Unlike, US, education in Canada is substantially less. Tuition fees for typical courses like engineering, business, science etc for a 4 year university degree is about $8- $10k per year in prominent univerities. If the kid stays with you and commutes to univeristy, the cost is about 12 ~14k and most of which they earn working summer/PT jobs. I would say the total cost would be less than 50k which I am currently paying for my kids.
For 4 years science/engineering university course, if living with parents, total cost around 50 to 60 K. If living in/near campus, add another 35 to 45 K.
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A Delhite in Toronto
So aside from the obvious one (RESP), what other methods do you use to prepare, to Dimple's question? I understand that the costs will be different based on where your kids study.
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Are you there?
Location: Western Hemisphere
Posted on: 05-05-14 16:03:43
My son is eligible to live and study in Canada and the US without any immigration hassles. hence, he would be eligible for the resident fee. The $250k estimate is based on a higher end US university.
The $250k estimate is for 8 to 12 years from now and not for now. So, you'll need to consider inflation and tuition increases which seem to about 4 to 7 percent quite often.
I am a fan of, for instance, U of Michigan Ann Arbor, Concordia (Montreal) and U of Alberta, to name a few. U of M is quite expensive. Of course, what my son would be a fan of....remains to be seen.
I have invested in RESP and then in non-retirement equity investments (higher risk, but higher potential to appreciate). Investing in non-retirement funds gives me the option to use the funds in the event of a dire emergency or continue to let it grow until education needs. By this, I am not constrained by tax or retirement laws.
I have kept up a habit of investing $YY every month on a regular basis, and I re-invest the capital gains and dividends that the investments earn.
Never forget the power of compounding which becomes significant over a long term. So, if you need $250k, doesn't mean the 250 has to come from your pocket. The key is to invest regularly, not panic when crap hits the roof, and let the earnings reinvest and grow.
Also, keep a higher estimate target for education (such as 250k). If and when you reach the target and end up not using the amount, you can go and splurge on an exotic vacation with the abundant extra money 
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Dimple2001
