This is the base cost - there are extras! Consider things like a transit pass, higher-cost programs (Engineering for example can add about $6,000 to the tuition amount), an active social life, transportation home for various holidays and so on, in addition to the costs you are incurring now like clothing, shoes, and haircuts.
You can defray these costs if your child works part-time during the school year and/or during the summer. A student who works 20 hours a week at minimum wage can earn about $10,000 over the course of a school year.
Savings plan
If your child is not at the graduation age yet, using an RESP is a smart way to save for post-secondary education. Take advantage of the government grant: you'll get a 20% match of your contribution from the Federal government to a max of $500 per child per year. If you started late, you can still get the grant from prior years by contributing more in future years.** You won't find a 20% return like that anywhere else!
Getting ready
If your child is ready to fly the coop and go off to university, figuring out the cost and how to pay for it might be on your to-do list. While they are busy with campus tours, completing applications, and acing grade 12 chemistry, you could be doing the money math, making a budget, and discussing options like having them work part-time or applying for scholarships or bursaries.
Exciting times!
Take care of yourself (and your money),
Anita Bruinsma, CFA
Clarity Personal Finance
*University of Waterloo, Western University, McMaster University, and the University of Windsor.
**There are rules and caveats.