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The charts are estimated costs based on today's average education cost of $4,000 a year for a student living at home and $10,000 a year for a student living away from home.
Figures represent the average between university and college students' median spending for tuition, fees and expenses. (From Statistics Canada, 2003).
Cost of post-secondary education includes tuition fees, books, supplies and non-educational expenses such as computers, utilities, transportation, etc., and in addition, room and board for students living away from home. (All figures rounded.)
A 5% annual increase in education costs (which takes into account inflation), four years of post-secondary education and a 5% annual pre-tax rate of return on investments are assumed.
Calculation assumes no additional investments once the child starts college/university.
Source: TD Bank Financial Group
Source: Survey of Approaches to Educational Planning (SAEP) (www.statcan.ca/daily)
What Does It Cost to Go to College or University?
When you go to a college or university, your costs each year may include:
- Application fees
- Tuition fees
- Extra fees
- Books and student supplies
- Living costs
- Health Insurance
- Other costs – e.g., Athletic Fees, Student Union Fees
binders, computer supplies, print cartridges, etc.
could also include specific equipment necessary for the course
this is an area of expense that is often overlooked, and it can be quite costly over the course of a year
Living Costs The least expensive housing option is often to live at home while attending a post-secondary institution. If that is not possible, consider other options that may help to reduce the cost such as: - living with a relative - living off campus (other expenses arise though such things as transportation) - sharing accommodation with others - living in a student co-op
Transportation Costs These vary according to each situation. It can include: - public transit - automobile upkeep - parking fees - carpooling costs - purchase of bicycle or other form of transportation
Health Insurance Students are required to have health insurance while studying. The circumstances of the coverage and the costs need to be investigated and included in costs.
Costs vary but can total $600-$800 or more per year
Note: Some of these fees may be recoverable but would mean loss of opportunity for participation.
Some tips to help you create an accurate budget 1. Determine your fixed costs, such as tuition, rent, and utilities. 2. Estimate variable expenses, such as food, laundry, clothing and entertainment. 3. Don't overlook one-time expenses, such as trips home, gifts, books, and course materials. 4. Include your "small" expenses, such as coffees, snacks, magazines, etc. 5. Don’t mistake wants for needs. Source: The Student Zone (www.teucu.com)
The Value of Compound Interest In terms of planning your savings to cover the costs of post-secondary education, one rule to know is… The Rule of 72 Divide the number 72 by the interest rate you earn each year and that’s the number of years it will take to double your money Example: $5,000 invested at 6% per year will take 12 years (72 divided by 6) to double to $10,000.
A Budget For Post-Secondary Education Costs To learn about building a budget, visit any of the following web sites: - www.buildingfuturesnetwork.ca - www.investored.ca - www.articles.moneycentral.msn.com