Smart Money

For those with the means, most parents prioritize saving for their children’s education. Many families accomplish this by opening a non-registered investment account (or bank account). These accounts have the benefit of simplicity and flexibility, but are not structured optimally for tax efficiency or asset protection. Alternative strategies include establishing formal trusts, investing in permanent life insurance policies or taking advantage of income splitting through family businesses. However, governments in Canada and the United States have established prescribed programs for promoting post-secondary education savings. The infograph below provides a cheat sheet for persons on both sides of the border.