Going to college or university in the near future? Thinking about how you're going to pay for your children's education? The short glossary below should help you with your financial planning.

Public education is managed by the provincial governments and paid for by school taxes. Children must attend school between the ages of 6 and 16 in Quebec and until the age of 15 in other Canadian provinces. Approximately 5% of children go to private schools, which charge school fees.

Higher or post-secondary education

There are two levels of higher or post-secondary education: college and university. Community colleges (known as collèges d'enseignement général et professionnel or CEGEPs in Quebec) and institutes provide pre-university or technical training. These two levels of education require financing owing to their tuition fees, incidental fees and maintenance charges.

Registered Education Savings Plan

If your child is young, you can set up a Registered Education Savings Plan (RESP). Parents and grandparents can set up a RESP in order to finance their children's or grandchildren's post-secondary education. A RESP may have more than one beneficiary, which makes it easier to transfer the accumulated funds from one child to another if the first one decides not to go to college or university. Contributions to such plans are not tax deductible. However, the federal government gives a grant equal to 20% of the contributions made, up to $400 per year, until the child is 17. This contribution is paid under the Canadian Education Savings Grant Program (CESG).

Lifelong Learning Plan

Did you know that with the Lifelong Learning Plan (LLP), you could withdraw up to $20,000 from your Registered Retirement Savings Plan, tax free, over a four-year period to pay for your education? However, you will have to start repaying these funds the sixth year after your first withdrawal.

Scholarships and bursaries

Remember that colleges and universities might offer scholarships, bursaries and awards. Like the Desjardins Group, many companies also offer scholarship programs. Such scholarships are usually not enough to completely cover education expenses, but they substantially reduce how much you have to pay.

Government financial assistance programs

Finally, government financial assistance programs may offer scholarships, bursaries, grants and loans. These programs are called the Ontario Student Assistance Program (OSAP) in
Ontario and Aide financière aux études (AFE). in Quebec. The other provinces and territories have their own programs. The amount you receive will depend on how much you and your parents, if relevant, can contribute to your studies. And, of course, the loan will have to be repaid.