BJK Financial Group Blog

Fall Always Makes Me Think About School and... RESPs

As classes start again, I find myself thinking once again about Registered Education Savings Plans (RESP). So, while almost all of us have heard of RESPs (92%) less than half (40%) of us are putting money into them. This article I found from Newswire goes on to describe an even more disturbing number – “A mere 17 per cent claim they’re knowledgeable about the contribution limits and benefits they offer.” Yikes.

I wrote a blog post about RESPs two years ago and will let you read what I had to say then. I describe how much money you can contribute to a plan, and how much money you can get to help build on it with the Canada Education Savings Grant (CESG). If you haven’t read it, or you need a refresher, I would suggest that you go ahead and check it out.

Go ahead, I’ll wait...

In that article I wrote about my daughter’s start at Laurier that fall. It turned out that Conestoga College was a better match for her. She moved over there and has already graduated. The important thing is that we had options, and she was able to do what was right for her. I couldn’t be prouder.

Conestoga: Where Education Meets the World

But talking about Conestoga College here in Kitchener and across SW Ontario brings us to the topic of international students. If you aren’t familiar with the story, last year Conestoga accepted 30,000 foreign students out of a provincial total of 100,000. One of the consequences of that was a surplus for the college of $252 million.

And while the college is proud to be providing schooling to so many students from around the world others aren’t certain that the school can sustain it. And things like the new limitations on international student cap are going to have an impact. Just to put this into context, the number of foreign students accepted in 2023 was a 31 percent increase over 2022. In fact, the number

This has had consequences. The overall student body has doubled in the last four years, putting a strain on both faculty and infrastructure. The school is dealing with a shortage of classroom space and of housing.

Housing Options are Being Developed, But...

Last year, Conestoga announced the purchase of a couple of buildings in Kitchener and Waterloo to deal with the housing needs of its students, especially its foreign students.

The building in Waterloo is on University Avenue E and used to be a student residence. The building in Kitchener is on Frederick Street and will be converted from being an office building to becoming a residence. The college even offered an opening for these buildings in the fall of 2025.

While significant, I don’t know if that will be enough.

And by the way, I refreshed my memory on these events with a look around the CBC News site. Always worth it...

Meanwhile at the Provincial Level

I just came across a Global News story that highlighted the growing crisis across Ontario. According to a study by Building Industry and Land Development Association: “The gap between Ontario’s housing stock and its rapid population growth is the widest it has been since records began”. Wow!

While the premier and his mates have proclaimed that they can fix our housing shortage, their one attempt turned into debacle and a nightmare. The Greenbelt Scandal that consumed his administration for almost the last 2 years. It’s hard to believe that all started in November of 2022. And thankfully the effort to build houses, which we need, in the one place we don’t need them.

Please Feel Free to Reach Out – To Talk About RESPs or Whatever Else

And remember, if you want to talk to me about saving for your children’s education, getting their money out to pay for this year’s tuition or anything else related to your financial well-being, give me a call at (519) 279-0186, email me at [email protected], or visit my website at www.bjkfinancialgroup.ca. I look forward to chatting with you soon.