Can Families Afford Their Children’s Future?

I often write about the immigrant experience and the differences between life in Canada and the places many of us left behind. Financial systems, cultural norms and even how we think about money and plan for the future can feel completely different. Yet there is one experience that seems to cross borders and cultures: the persistent worry parents carry for their children.

That worry appears in many ways. We fret about our children’s health, happiness and safety. We ask ourselves if we are providing enough, if we’re making the right decisions today so they can thrive tomorrow. It stays with us as a constant concern that evolves as children grow, but rarely disappears.

Across families and countries, one financial worry stands out: how to secure our children’s economic future. For some people this begins before they become parents—choosing to delay parenthood until they feel financially ready. For others, it’s a daily question: Are we earning enough, saving enough, making the right trade-offs? For newcomers to Canada, these questions are often amplified by the challenge of starting over in a new system where rules and expectations are different.

Education is where that anxiety often becomes most concrete. Rising tuition, inflation and global uncertainty have made planning for post-secondary education feel more urgent than ever.

Parents are saving, but confidence is still low

Embark’s Early Parent Readiness Report captures this tension well. On one hand, many parents are taking action: nearly three-quarters (73%) have opened a registered education savings plan (RESP) or are saving for their child’s future education, and awareness of government matching programs like the Canada Education Savings Grant sits at 74%.

But the confidence behind those actions is more muted. Only 33% of parents feel confident they can fully pay for their child’s post-secondary education; 27% say they won’t be able to afford it at all, and 26% expect finances will be tight. While 36% of millennial parents have saved $5,000 or more, nearly a third (32%) haven’t started saving yet.

That gap—between proactive behavior and underlying doubt—reveals the real story. Parents are trying to prepare, but many remain unconvinced their efforts will be enough.

Understanding the RESP, and why it matters

In Canada, the RESP is a structured, tax-advantaged way to prepare for education costs. Contributions grow tax-free and the government helps through programs such as the Canada Education Savings Grant (CESG), which matches a portion of eligible contributions.

When we first arrived in Canada, opening an RESP felt like a practical first step. A friend explained it simply: take advantage of the “free money.” For example, on a $2,500 annual contribution the government adds $500, providing a guaranteed boost before any investment growth. That kind of effective return is rare and makes the RESP a powerful tool for families who want to reduce future educational costs.

Beyond the math, an RESP offers a measure of control over a future expense that otherwise feels overwhelming as tuition climbs and costs compound over time.

The emotional side of planning for education

I asked my wife what worries her most about our child’s future education. Her answer was simple: that whatever we save won’t be enough. That feeling is likely familiar to many parents. Even with savings, incentives and careful planning, uncertainty persists—costs rise, timelines stretch across decades and many factors remain outside our control.

Some parents plan for their children to contribute through part-time work, scholarships, or loans. That approach is valid, but it raises a question: if we can reduce the burden on our children, should we try to do so? Student debt is not just a line item. It influences early career choices, delays milestones like homeownership, and adds stress at a stage where young adults are already navigating big life decisions.

In Canada, student debt is common and significant for many graduates. For parents, the objective is often not to cover every expense but to create a foundation that gives children options and reduces the likelihood they begin adulthood under heavy financial strain.

Early debt can compound other financial challenges, and many young Canadians face vulnerability to financial stress. For that reason, many parents look to provide enough of a head start so their children can focus on learning and launching careers without excessive financial pressure.

From intention to action

The report also shows how parents prioritize financial choices now. Asked what they would do with an extra $2,500, 22% said they would save it and 20% would pay down debt; fewer prioritized immediate spending on baby items or housing. This suggests parents are deliberately balancing present needs with future goals, making disciplined choices even when money is tight.

Still, the financial reality is clear. Most new parents report spending $500 to $999 per month on their child, and more than a third have received help from family to make ends meet. This isn’t careless spending; it’s careful navigation of competing priorities.

Practical advice for parents

I’m not a financial expert, but I reached out to Andrew Lo, CEO of Embark, for practical tips parents can use when planning education savings:

1. Start early and make saving automatic. Even small, regular contributions add up. Automate transfers so saving becomes a habit and benefits from long-term growth.

2. Use government grants. Claim available incentives as early as possible so those funds can grow through compounding over time.

3. Invite family and friends to contribute. Encourage contributions toward education savings instead of traditional gifts—small amounts from many people can meaningfully accelerate progress.

A shared reality

Despite differences between countries and financial systems, parental concern for children’s futures is universal. In Canada, tools like the RESP and government grants help ease that burden, but they don’t eliminate uncertainty.

Perhaps that’s not the goal. The point is to do what we can, with the resources available, to give the next generation a stronger starting point. If there’s one thing uniting parents everywhere, it’s this: we can’t control every outcome, but we will do everything possible to prepare our children for what comes next.