Many Parents Of Young Children Need To Learn About Benefits Of Registered Educations Savings Plans (RESPs)

Toronto, ON - According to a new Ipsos Reid survey of more than 1600 Canadian parents of young children age 5 and under, nearly all would like their child to be able to achieve their hopes and dreams when it comes to their education goals and are willing to take responsibility for their child's education costs.

The survey, conducted on behalf of USC Education Savings Plans, reports that 96% of these parents agree with the statement that "it is important to me that my child goes on to attend a post-secondary institution, such as a university of college, if they wish". And approximately the same proportion agrees (95%) that they and/or their partner will likely "provide financial assistance for their child if they choose to enrol in a post-secondary institution".

But while nearly all parents surveyed say they would like their child to go on to an institute of higher learning if they desire and appear willing to help them financially in this endeavour, a majority (82%) express concern about the "financial burden of tuition costs for (their) child if they decide to enrol in a university or college program". Thus, most (79%) indicate that they are "aware of the future education costs for (their) child and have started saving money now".

So, moving forward, how do parents plan on preparing for these potential future education costs? Half (48%) indicate that they plan on purchasing an investment vehicle, such as an RESP to help finance these costs. In fact, four in ten (43%) admit that they already have an RESP set up for their child (Albertan parents are the most likely to have already done so).

Among the reasons why parents have chosen to invest in RESPs: this vehicle allows for government and tax incentives (23%), and that the costs of education are "only going up"(7%) - many (7%) feel that an RESP is the easiest and most convenient way to save for their child's education.

And, what is the top reason for not having an RESP? One-third (33%) simply say they "can't afford it".

These are the findings of an Ipsos Reid poll conducted on behalf of USC Education Savings Plans fielded from October 5th to October 10th 2006. For the survey, a representative randomly selected sample of 1635 parents of children age 5 and under were interviewed via an on-line panel survey. With a sample of this size, the aggregate results are considered accurate to within +/-2.5 percentage points, 19 times out of 20, of what they would have been had this entire population been polled. The margin of error will be larger within each sub-grouping of the survey population. These data were weighted to ensure the sample's regional and age/sex composition reflects that of the actual Canadian population according to the 2001 Census data.

Full tabular results are available in the attached factum and tables

For more information or to schedule a media interview, please contact:

Paul Orovan
Research Manager
Ipsos Reid Publc Affairs
(416) 324-2900
[email protected]

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