Parents not saving for future

Young families, mired in debt, can’t save for tomorrow.



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Many Canadian parents are not planning ahead when it comes to their child’s education, a recent RBC poll revealed.

The survey found that 44% of young families are not saving for future schooling costs, while 42% with children under the age of 12 are not taking complete advantage of their tax savings.

The biggest obstacles these families are facing, says RBC, is paying down debts and living paycheque-to-paycheque. The bank recommends things like opening a RESP or TFSA as smart ways to start saving.

2 comments on “Parents not saving for future

  1. Seems like predictable advice from RBC: Open an account with us so we can collect more fees

    Obviously saving for education and retirement is a good thing, but for many young families, paying down debt is a good priority. Telling these families to open a TFSA when they have significant debt makes no sense: if you do have an extra $5,000 a year, make a prepayment on your mortgage. The interest you'll save is likely to be far more than any tax savings you get from a TFSA.


  2. I'm with the poster above – after taking a $16,000 per year pay decrease (ouch!) I had to put forward a consumer debt proposal to my creditors. While advising my banker of same, in the same conversation she attempted to talk me into investing in RRSPs this year, as well as RESPs for my children. I felt like she wasn't listening at all, or didn't understand banking fundamentals. My response: Until my debts are paid off, investments will be placed on the back burner. That's only logical. Surprise, surprise: It was RBC.


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