SOURCE: Scotiabank

Scotiabank

November 16, 2015 11:55 ET

National Education Savings Week: 5 Tips to Help You Get an "A+" by Planning for Your Children's Future

TORONTO, ON--(Marketwired - November 16, 2015) - Today marks the beginning of National Education Savings Week in Canada. According to Statistics Canada, university tuition prices increased by 3.2% for the 2015/2016 academic year and, on average, undergraduates paid $6,191 in tuition fees.1 With fees increasing at more than three times the current rate of inflation2, it's more important than ever that families are prepared well before their child is handed their high school diploma.

"Families need to plan well in advance for their children's post-secondary education and to factor in the additional fees that go beyond the tuition alone," said Ahmad Dajani, VP of Investments and Retail Deposits, Scotiabank. "Working with a financial advisor and investing in a Registered Education Savings Plan is a great way to enable families to plan ahead for the costs of university or college, so that students can focus on their studies rather than how they're going to pay the bills."

5 Tips for Successful Education Savings

  1. Start early - sign up for a Registered Education Savings Plan (RESP) as soon as your child is born. This will help create the habit of saving from the start and you'll reap the benefits of the compound interest after 17+ years of saving.
  2. Save automatically - set up automatic deductions from your pay cheque that go directly to the RESP in order to take the guesswork out of saving.
  3. Maximize your contribution - one of the biggest advantages of saving with an RESP is that through the Canada Education Savings Grant (CESG), the government pays an additional 20% on the first $2,500 you contribute to your plan3, helping your nest egg to grow even faster!
  4. Involve the family - let aunts, uncles, grandparents and family friends know that you've opened an RESP and invite them to make contributions as gifts. Their generosity can make a substantial impact on your children's future.
  5. Make a game plan - some parents may think they can't start an RESP because of other savings priorities. Talk to your financial advisor to determine how you can create a financial plan that meets all of your savings goals.

Mr. Dajani will be featured in an upcoming Twitter chat with Canadian personal finance blogger Hollie Pollard of Common Cents Mom. Canadians will have the opportunity to learn more about RESPs and savings strategies. Follow #CDNMoney on Tuesday, November 17, at 7 p.m. to join the conversation.

Saving for Today, and Tomorrow

It is probably no coincidence that this week is also Financial Planning Week in Canada. From RESPs to vacations to mortgage payments -- saving for your children's education is one part of a family's overall financial plan.

Financial Advisors can help to create a tailored, easy-to-understand take home financial plan with solutions that can be modified to keep you on track and adjusted to suit your life changes and goals. Visit a local Scotiabank to learn more.

About Scotiabank

Scotiabank is Canada's international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and parts of Asia. We are dedicated to helping our 21 million customers become better off through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of more than 87,000 employees and assets of $863 billion (as at July 31, 2015), Scotiabank trades on the Toronto (TSX: BNS) and New York Exchanges (NYSE: BNS). Scotiabank distributes the Bank's media releases using Marketwired. For more information, please visit www.scotiabank.com and follow us on Twitter @ScotiabankNews.

1 http://www.statcan.gc.ca/daily-quotidien/150909/dq150909b-eng.htm

2 Average 2015 inflation rate is 1.06% - http://www.inflation.eu/inflation-rates/canada/historic-inflation/cpi-inflation-canada.aspx

3 Conditions apply. For more information please speak to your financial advisor.

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