Saving for Your Child’s Education: New Study Says It’s Worth It

Parents today face a tremendous responsibility: preparing children for a future that is difficult to predict. The world these children will inherit as adults already differs dramatically from the one their parents knew. Artificial intelligence is reshaping jobs, industries are being disrupted, and the skills that once guaranteed success may not be the ones that matter in coming decades. Many parents feel uncertain and overwhelmed as they make decisions about schooling, extracurricular activities, and long-term investments that will influence their children’s prospects for years to come.

That uncertainty is compounded by real financial pressures. Families are managing mortgages, childcare costs, and a rising cost of living. At the same time, long-term estimates suggest the price of a four-year university degree could climb substantially—one forecast from the Canadian Scholarship Trust projects it might reach as much as $192,000 by 2042. Those projections raise an essential question for many families: is saving for education still the best use of hard-earned money?

The short answer, supported by extensive research, is yes. Saving for education remains a wise investment, with benefits that go far beyond higher earnings alone.

Post-secondary graduates earn more, enjoy better health, and contribute more to society

Post-secondary education—whether completed through a college, university, or apprenticeship—continues to offer meaningful advantages in a changing economy. Canadians who hold post-secondary credentials consistently experience higher employment rates and greater lifetime earnings than those whose formal education ends with high school. These income advantages are substantial and tend to persist across a lifetime of work.

Beyond income, education provides important protection as automation and AI alter the labour market. Statistics Canada research indicates that only about 3–4% of university graduates face a high risk of job displacement, compared with roughly 33% of workers without post-secondary education. That disparity highlights how education can reduce vulnerability to technological changes.

Yet the value of post-secondary education is not limited to job prospects. Graduates generally enjoy longer, healthier lives: they tend to smoke less, exercise more, and make greater use of preventive healthcare. They also form more stable relationships, engage in more enriching activities with their children, and contribute more actively to civic life. Post-secondary graduates vote more often, volunteer more frequently, donate more to charity, and participate in community organizations at higher rates. In short, education supports stronger families and communities across generations.

Given these far-reaching benefits, supporting a child’s post-secondary education matters. But encouragement alone is not enough—starting to save early is critical. Without savings, student debt can erode many of the advantages education aims to deliver.

The real cost of student loans extends far beyond interest

Many Canadian post-secondary graduates carry substantial student debt, often amounting to tens of thousands of dollars. That financial burden does not simply take time to repay; it can change life choices and opportunities. Research consistently shows that graduates carrying heavy debt feel pressured to prioritize immediate income over meaningful or riskier pursuits—such as working in public service, joining nonprofits, or starting a small business. Monthly loan obligations make it harder to take entrepreneurial risks and can delay major life milestones like buying a home, getting married, or starting a family.

Debt also affects mental and emotional well-being. Studies link significant student debt to higher levels of anxiety and depression, as well as to what behavioral scientists call a “bandwidth tax”—the continuous cognitive load of worrying about finances, which reduces people’s capacity to make thoughtful decisions and plan effectively for the future.

There is good news, however: the challenge parents face is manageable. Rather than trying to foresee which exact jobs or skills will be most valuable, many families find that registered education savings plans (RESPs) offer an optimistic and flexible approach. RESPs let you invest in a child’s potential rather than betting on a single career path.

RESPs can be used for university, college, apprenticeships, technical training, and a wide variety of skills-based programs. This flexibility means you’re not locking your child into one route; you’re helping ensure they graduate with critical thinking, creativity, problem-solving abilities, and emotional resilience—qualities that apply across careers and industries. Perhaps most importantly, saving ahead reduces the need for large student loans, giving young adults the financial freedom to pursue meaningful work and seize opportunities as they emerge.

You can’t predict the future—but you can prepare your child to shape it

Computer scientist Alan Kay famously said, “The best way to predict the future is to create it.” Saving early and consistently for education is a concrete way to help your child build the future they want. Rather than guessing which occupations will thrive, you can invest in your child’s ability to learn, adapt, and lead. That investment supports not only career success, but also the well-being and civic engagement that strengthen families and communities.

Read more about education:

• Top 5 questions about family RESPs
• Reducing risk in an RESP: How to invest as your kid approaches college or university
• RESP vs. RRSP and TFSA: Which is best for education savings?