The
Canada-United States trade war
is affecting anxious Canadian parents’ ability to save for their children’s
education
, according to a new study by
registered education savings plan (RESP)
provider Embark Student Corp.
Almost two-thirds of parents are concerned about trade tensions and nearly half said it has impacted their ability to save for their child’s education, according to the survey of 1,000 parents with children under the age of five. And 60 per cent said it has changed how they approach savings and 55 per cent said it has impacted their investment strategies.
These
tariff anxieties
are only adding to the mounting challenges facing new parents today, including a lack of sleep and the rising cost of education.
Almost 80 per cent of parents said they are regularly woken up by their children, with 41 per cent indicating they are getting six or fewer hours of sleep per night and 37 per cent admitted to making financial decisions they regretted while being sleep-deprived.
“This survey shows that new parents are facing a perfect storm: a lack of sleep, everyday challenges of raising young children,
rising costs
, and now, trade tensions,” Andrew Lo, chief executive of Embark, said in a
press release
.
The most common reason parents gave for not opening an RESP was not having enough money, followed by fear of their financial situation changing and worries about having to make regular contributions.
Rising education costs have increased the challenge. Children born in 2024 are projected to pay 36 per cent more compared to today, according to Embark’s estimates.
However, 82 per cent still consider their child’s education a top priority, ranking higher than the 77 per cent who said paying down debt and the 72 per cent who said saving for retirement were a top priority.
A majority of the parents surveyed spend a lot of time thinking about how they’ll pay for post-secondary education and wish they had more knowledge about saving and investing for it.
Lo recommended shifting from a “saving is impossible” to an “every little bit counts” mindset to navigate economic uncertainty.
“It’s easy to get discouraged by market volatility, but even contributing a little each month to your child’s RESP can make a big difference over time,” he said. “Government grants alone can match up to 20 per cent of your RESP contributions, delivering immediate value before factoring in compound growth and investment gains.”
But the outlook is gloomy for many Canadian parents, with 67 per cent believing it’s difficult to balance their family’s current needs with their long-term financial goals and 21 per cent who think Canada-U.S. trade relations have permanently changed for the worse.
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The U.S. economy shrank at the start of the year, restrained by weaker consumer spending and an even bigger impact from trade than initially reported.
Gross domestic product decreased at a 0.2 per cent annualized pace in the first quarter, the second estimate from the Bureau of Economic Analysis showed Thursday. That compared with an initially reported 0.3 per cent decline.
The economy’s primary growth engine — consumer spending — advanced 1.2 per cent, down from an initial estimate of 1.8 per cent and the weakest pace in almost two years. Meantime, net exports subtracted nearly five percentage points from the GDP calculation, slightly more than the first projection and the largest on record.
The slight upward revision in GDP reflected stronger business investment and a greater accumulation of inventories. Federal government spending wasn’t as much of a drag as originally reported.
— Bloomberg
- Today’s Data: Canada real GDP for the first quarter, monthly real GDP for March, Ottawa’s fiscal monitor for March, United States personal income and consumption for April, advance economic indicators report for April and University of Michigan consumer sentiment index for May
- Earnings: Lowe’s Cos. Inc., Laurentian Bank of Canada, Canopy Growth Corp.
- Trump’s move to block foreign students from Harvard sends shockwaves within Canadian circles
- David Rosenberg: Latest labour data shows Canadians are begging the Bank of Canada for renewed rate relief
- Noah Solomon: You can’t always get what you want — the tariff rendition
- How spousal RRSPs can reduce taxes without getting you in trouble
Summer often ushers in a more carefree financial attitude, but with lingering higher interest rates and the current geopolitical climate affecting household budgets, funds for summer fun might be limited, especially when also dealing with debt. When you are feeling financial strain, typical trips involving travel, lodging, and daily expenses might seem unrealistic. However, with careful planning and a focus on budget-friendly choices, a memorable summer without overspending is possible, writes Mary Castillo.
Find out more
.
McLister on mortgages
Want to learn more about mortgages? Mortgage strategist Robert McLister’s
Financial Post column
can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his
mortgage rate page
for Canada’s lowest national mortgage rates, updated daily.
Financial Post on YouTube
Visit the Financial Post’s
YouTube channel
for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.
Today’s Posthaste was written by Noella Ovid with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.
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Posthaste: U.S.-Canada trade war getting in the way of RESP contributions
2025-05-30 12:00:51
