Cost of university projected to increase by more than 30 per cent over 20 years: study

As post secondary education becomes more expensive many parents worry they won’t be able to afford it.

University is not cheap, and it’s only expected to get more expensive.

A new study projects the price of a four-year post-secondary education in Canada will increase by more than 30 per cent within the next 20 years, which has some parents considering other options for their children.

“As time has kind of evolved, I think that we’re leaning more towards trades and entrepreneurship. I feel like post-secondary education – does the cost and value of the degree – do they equate like they used to? Even for ourselves, we only just finished paying off our student loans a few years ago,” said parent Megan Mykietiuk.

Embark, a company specializing in education savings, recently surveyed parents nationwide and found 60 per cent worry they won’t be able to afford the rising costs of education.

“One of the things that we also discovered is the current geopolitical landscape has made parents very conservative about starting a savings account for post-secondary education. We call that the RESP,” said Embark president and CEO Andrew Lo.

Embark projects by 2042, the average cost of a four-year education will go up 36 per cent when tuition, housing, food and other expenses are factored in. Embark’s data shows the national average would be roughly $137,000. It’s even higher for Nova Scotia, where the overall cost is pegged around $170,000, which is up almost 48 per cent compared to 2025. In New Brunswick, the cost is forecast to hit $161,000, which is a 44 per cent increase, while on Prince Edward Island it’s expected to cost more than $139,000 or an increase of 38 per cent.

“I think the math is more complex. I mean, certainly, the cost of housing and the demand for housing has increased those costs. Obviously, inflation, food, etcetera,” said Lo. He noted it’s never too late for parents to start saving.

“It’s going to make a big different for their post-secondary education, and you can save as little as $5 a week, $10 a month, and start building as you can afford or feel comfortable,” he said. While the cost is one factor, it’s also hard for parents to know what the future job market will even look like.

“I think that with AI technology coming down, it’s also questioning too about the loss of white-collar jobs and educated jobs, and it seems like there’s more of a trend moving towards our hands-on professions and more of our trades being where the value is,” said Mykietiuk.

According to Embark, the average cost of a four-year education in Canada is currently $101,319.