Education Savings: HSBC Bank Canada: HSBC Bank Canada

Education Savings

Saving for your children's education requires a long-term plan. And, like saving for retirement, the earlier you start your plan the better. Use this calculator to help develop or fine tune your education savings plan.

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This calculator is for informational and general illustrative purposes only and may be based on assumptions, dates and projections that may not be correct or applicable.

Definitions
Age of children	Current age of your children. This calculator is based on each child beginning their college education at age 18. The difference between their current age and 18 is the number of years you have to save.
Annual tuition and books	Current estimated cost of one year of tuition and books. This amount should be per child and be specific to the school they may be interested in attending. For the purposes of this calculator all expenses are assumed to be due at the end of the year.
Living expenses	Current estimated cost of one year living expenses. Like tuition and books, this amount should be per child and specific to the school they may be interested in attending. For the purposes of this calculator all expenses are assumed to be due at the end of the year.
Education cost inflation	This is the percentage that you expect educational costs to increase per year.
Current savings	The total amount you currently have saved for your child's (or children's) education.
Monthly contribution	The amount you plan to save per month toward your child's (or children's) education. This calculator assumes that all contributions are made at the beginning of each month.
Registered Education Savings Plan (RESP)	Check this box if you wish to calculate your savings with a Registered Education Savings Plan (RESP). Learn more about RESP contribution limits and the Canada Education Savings Grant (CESG).
Rate of return	The annual percentage rate you expect to earn on your educational savings. The average annual rate of return for the TSE has been 11% for the last 20 years. You may wish to use a more conservative rate of return if your child is within 10 years of enrolling in school. This calculator compounds all growth annually. For the purposes of this calculator taxation is not factored into the results. If you pay taxes on the interest, dividends or capital gains from these investments you may wish to enter your after tax rate of return.