The document provides tips for saving for college, including starting an RESP as early as possible to benefit from tax deferral and government contributions. It recommends saving $100 per month for 18 years to accumulate over $40,000. Applying for scholarships early is also suggested, as is having a student work part-time to help pay expenses. Seeking advice from a financial planner can help create a savings plan that takes advantage of all programs and tax benefits. Loans may be necessary if not enough has been saved, but overborrowing risks serious financial difficulties.

1. Saving for College

2. Saving for college can seem like a daunting task.
With ever escalating university costs, it might seem
impossible.
Here are a few tips to help you prepare for
university costs.
Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca

3. Paying for a university education is more
than just tuition. Other expenses can
include:
•Textbooks, supplies and computers (software
and Internet)
•Student fees
•Housing
•Transportation costs
•General living expenses (bills) and groceries
•Health care
•Entertainment
Know What You’ll Need
Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca

4. Start your Registered Education Savings Plan
(RESP) as soon as possible. Benefits include:
•Income earned inside an RESP is tax-deferred.
•The government contributes to a student’s
RESP.
•At the time taxes are due, they are payable by
the student who is likely to pay at a much lower
rate.
Open an RESP
Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca

5. The Sooner You Start Saving,
the Better
Never assume you can’t save
enough.
Any savings you can manage can
help if you give them enough time
to grow.
Investing just $100 a month for 18
years will yield over $40,000,
assuming an 6.5% compounded
annual return.
Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca

6. Apply for scholarships.
Start your research early. There are
many scholarships available but the
competition can be fierce.
Scholarships vary in nature and
award amounts.
You might find scholarships based
on:
•Academic merit
•Athletics
•Intended program of study
•International students
Apply early and often.
Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca

7. Part Time Work
While it may not seem like much, the
income from your future grad’s part
time job can add up quickly to help
cover college expenses.
Even if it only goes towards pocket
money, it’ll be that much less that
comes out of your monthly budget.
Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca

8. Budget for your new expenses
Build room into your monthly
household budget for new expenses
related to university.
Look for cost cutting opportunities in
your budget now so you don’t come
up short when the extra bills start
rolling in.
Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca

9. Seek Professional Financial
Planning Advice
Meet with a knowledgeable financial
planner early on.
Learn about special investment
programs, any tax implications or
available tax credits and the best
ways to save before putting your plan
into place.
Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca

10. What if you haven’t saved
enough?
Federal, state, and private grants and
loans can bridge the gap between
your savings and tuition bills, even if
you think you make too much to
qualify.
Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca

11. Before taking on more debt to pay for college
costs, closely examine your financial situation:
•How much debt are you carrying already?
•How much have you saved for retirement?
•Would you be able to survive and financial
setback such as a loss or reduction of current
income?
Should you go into debt to pay for
university expenses?
Overborrowing can lead to serious financial difficulties. Meet with
a financial professional before taking on additional debt.
Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca

12. For More Information or
Other Ways to Help Manage Debt in Alberta
Visit
www.solvingdebt.ca
Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca