According to a 2018 Maclean’s study, the average yearly cost of post-secondary education in Canada is $19,498.75.

The same study also revealed nearly two-thirds of students don’t have a Registered Education Savings Plan (RESP).

If you are one of those students and are losing hope that you’ll be able to afford tuition, it’s not too late!

Here’s a four-step action plan to finding the money for your post-secondary education:

Step 1: Earn it. As a student, I know it can be hard to save your paychecks from a part-time or summer job but doing so could pay for a semester or more of your tuition.

A part-time job during the year can not only fund your education, entertainment and food costs but also provide a valuable reference that can help you start your career after graduation.

Photo Credit: Contributed

Step 2: Invest your earnings.

While it’s ideal for parents to open an RESP as soon as you are born to take maximum advantage of the government grants, they can still receive grants up until the end of the year you turn 17.

If you contribute $2,500 a year into the RESP, the government will match 20% of your contributions up to $500 a year. 

If you are already over the age of 17, you can still get the benefit of higher interest rates by investing cash from part-time jobs, birthday and holiday gifts in an investment such as a GIC or term deposit. 

Photo Credit: Contributed 

Step 3: Take advantage of free money.

Every year thousands of dollars of scholarships and bursaries get left on the table because students don’t apply for them.

While each application can take a few hours and require references, which deters many students from applying, it’s free and available money you can receive.

If one application took three hours and provided $500, it works out to $166 an hour. Can your part-time job pay that?

Also, if you qualify for student loans (see more in Step 4) you are likely able to take advantage of federal and provincial government grants.

They are available to both full and part-time students and are automatically applied for when you complete your B.C. student loan application. 

Photo Credit: Contributed

Step 4: Borrow it.

The same Maclean’s study reported that half of the university students had a student loan. While taking on debt is serious, when used for education it’s one of the best loans you can get.

For part and full-time students from low to middle-income families, there are federal loans offered in partnership with the province of B.C through the Canada Student Loan Program (CSLP).

As federal and provincial student loans depend on your parent’s income, you may not qualify.

If that’s the case, credit unions and banks offer alternative solutions such as student lines of credit or student loans.

While government-issued student loans typically offer the lowest interest rates and don’t begin charging you interest until you are finished school, a credit union or bank student line of credit offers flexibility.

These lines of credits also have low-interest rates and you can draw on it when you need it, which means you don’t get charged interest on the money you don’t use, unlike a student loan which gives you a lump sum payment. 

While these are only a few tips to maximize your education savings, I always recommend seeking the advice of an accredited financial professional to help you reach all your financial goals.

Valley First is a premier provider of banking, investment and insurance services for residents and businesses in the Okanagan, Similkameen and Thompson valleys. As a division of First West Credit Union, B.C.'s third-largest credit union with 50 branches throughout the province, Valley First brings innovative products, an extensive branch network, and local decision making to the banking experience. For more information on Valley First, visit www.valleyfirst.com.

Brittney Weatherill is a Wealth Advisor at Valley First, a division of First West Credit Union, in Kelowna. Connect with Brittney at 250-826-7063 or bweatherill@valleyfirst.com.