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Financial limitations preventing parents from saving for education costs: RBC

The vast majority of Canadians who aren't saving for their children's education feel they don't have the money to do so, according to an RBC poll.

The vast majority of Canadians who aren't saving for their children's education feel they don't have the money to do so, according to an RBC poll.

About 44% of parents with children under the age of 12 are not currently saving with 84% of them saying they would like to but aren't able to because of their current financial situation.

About 30% said they are living paycheque to paycheque while 28% are focusing on paying down debt.

RBC noted, however, that parents can still take advantage of government savings programs and tax credits towards a child's education. The registered education savings plan is one where the government provides a Canada Education Savings Grant which matches contributes by 20% up to a maximum grant of $500 per year, or $7,200 over the life of the plan.

Other tax credits available include the children's fitness amount tax credit, and the child amount tax credit, which gives parents a credit for each child under the age of 18.