Inflation, cost of living hurting education savings plans: survey

A new survey of Canadian parents suggests they are finding it increasingly difficult to save for their child’s education as inflation and the high cost of living take a bite out of excess savings.

The survey from education savings company Embark found that more than 76 per cent of respondents are finding it harder to save for their child’s education, while 46 per cent have stopped contributing to their child’s education savings account altogether.

“Today’s parents are watching their children grow up during a difficult job market and volatile economic conditions, and they see how higher education can provide security for young adults,” Andrew Lo, president and CEO of Embark, said in a news release on Tuesday. “Parents shouldn’t feel guilty if they haven't started saving for their child's education or have to go to extremes to give their child the tools they need to succeed.”

Education savings remains an important aspect of financial planning for many Canadians, as 66 per cent of respondents said they would postpone retirement to help pay for their child's post-secondary education, while 43 per cent said they would go into debt to help pay for it.