Oct 6
2009

Educating Grandkids!

By admin

Will your grandchild be able to afford university?
submitted by Global Education Management Corporation

Pens, paper, binders, back-pack and of course new clothes — it must be back-to-school time and your grandchild is heading off to elementary school. From experience, you know that your grandchild will grow in a blink of an eye -just like your child did.

And in no time, your grandchild is ready to go to college and university. But post-secondary education costs are more that just some paper, binders and new clothes.

In fact, you’d be shocked to find out the new additional costs that your grandchild will need to pay. Gone are the days when working a summer job could pay for school or when parents could cover the cost of college or university out of pocket.

When your grandchild is ready to attend university, an average four-year Bachelor or Arts degree is expected to cost over 110,000*. This amount covers the increasing costs of tuition and education related expenses such as books, supplies and accommodations.

Although costs may vary by program, school and province, many of the same expenses will still apply to both college and university students across Canada.

Is your grandchild ready for the real cost of education?

As a concerned grandparent, you can help. Consider investing in an Educations Savings Plan for your grandchild such as the Global Educational Trust Plan (Global Plan).

When the Global Plan is registered†, your savings grow tax-deferred. The money is taxed only when your grandchild withdraws the funds to pay for tuition and education-related expenses. You can contribute up to a lifetime maximum of $50,000.

In addition, the Government of Canada offers additional funding such as the Canada Educations Savings Grant‡ (CESG) and Canada Learning Bond (CLB), which add up to $9,200 in extra savings.

For more information about government grants and saving for your grandchild’s Education Savings Plan, contact a financial professional today.

* “Education Cost Calculator”, CanLearn Website (www.canlean.ca). Assumes 3.0% annual inflation from 2007 to 2025 ‡ Subject to eligibility † The Global Plan is eligible for registration under section 146.1 of the Income Tax Act. Registering the Global Plan is subject to meeting any and all age, residency, Social Insurance Number provisions and other requirements of the Act. 02091 (091807) www.globalfinancial.caEvery dream needs a Plan. This report prepared by Global Education Management Corporation, Global Educational Marketing Corporation, #101 4940 Canada Way Burnaby, B.C.V5G4K6 tel: 604.430.5475

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