As Canadian parents stare down the hefty price tag of post-secondary education, many are reconsidering how they save for their children’s future. A recent study reveals that shifting global trade relations and economic uncertainties have prompted a significant change in education savings strategies across the country.
According to a survey by the Education Savings Institute, nearly 68% of Canadian parents have altered their approach to education savings in the past two years, citing international trade tensions as a key motivator. This marks a substantial shift from previous years when domestic factors primarily drove savings decisions.
“We’re seeing parents become increasingly sophisticated in how they think about education funding,” explains Mira Patel, chief economist at Canadian Education Planners. “They’re connecting dots between trade agreements, job market projections, and what skills their children might need fifteen years from now.”
The survey found that Registered Education Savings Plans (RESPs) remain the preferred vehicle for education savings, with 82% of respondents utilizing them. However, the allocation within these accounts has evolved. Parents are increasingly diversifying beyond traditional Canadian equity investments, with 41% now including global exposure and 26% incorporating alternative assets.
This shift reflects broader anxieties about Canada’s economic position amid changing trade dynamics. With the renegotiation of NAFTA into the USMCA agreement and ongoing tensions with China, parents are hedging against potential impacts on domestic industries where their children might one day work.
Interestingly, there’s also a generational divide in these responses. Millennial parents show the strongest reaction to trade uncertainties, with 74% reporting changes to their education savings approach, compared to 59% of Gen X parents. This difference might reflect millennials’ own experiences entering the workforce during periods of economic volatility.
“Younger parents have lived through multiple economic disruptions,” notes Derek Wong, portfolio manager at First Heritage Investments. “They watched manufacturing jobs disappear, tech booms and busts, and now AI transforming industries. It’s made them more anticipatory about preparing their children for a changing economy.”
The geographic distribution of these concerns also tells an important story. Parents in manufacturing-heavy regions like southern Ontario report the highest levels of concern (76%), while those in regions less exposed to international trade fluctuations, such as parts of Atlantic Canada, show more moderate responses (52%).
Beyond just saving more, parents are making qualitative changes to their education planning. The survey indicates 37% are now considering international education options for their children, believing global experience will better prepare them for an uncertain economic future. Another 29% report increasing focus on technical education savings rather than traditional university paths.
“Parents are becoming more strategic,” says Leanne Taylor, education policy analyst at the Fraser Institute. “They’re not just saving blindly for ‘college’ anymore—they’re thinking about specific skills and experiences that might insulate their children from trade disruptions.”
Financial institutions have taken notice of this trend. Major banks have begun offering education savings products with more flexible investment options and career planning resources. TD Bank recently launched an “Education Futures” RESP option that includes exposure to emerging markets and technology sectors, specifically marketed to parents concerned about economic shifts.
“We’re seeing demand for products that help families prepare not just financially, but strategically,” explains Roberto Vazquez, head of educational banking at Scotiabank. “Parents want guidance on which industries might be resilient to trade disruptions and which skills will remain valuable regardless of economic shifts.”
The federal government has also responded to these concerns. Last year’s enhancement to the Canada Education Savings Grant included additional incentives for families investing in STEM-focused education paths, acknowledging the changing landscape of work.
For individual families, this shift has meant more research and consideration. Winnipeg parent Aisha Khoury describes her changed approach: “Five years ago, we just put money in the RESP and figured our daughter would go to university here in Manitoba. Now we’re thinking about whether she should study abroad, learn Mandarin, or focus on robotics—things that might be valuable no matter what happens with Canada’s trading relationships.”
Financial advisors note this represents a maturation in how Canadians approach education planning. Rather than viewing it as a simple savings exercise, more families see it as part of a broader economic strategy for their children’s futures.
What hasn’t changed is the recognition that education remains one of the most reliable investments. Even as parents worry about economic shifts, 91% still rank education savings as their top financial priority after housing costs, ahead of retirement planning and other investments.
As global trade relationships continue to evolve, so too will the strategies Canadian families employ to prepare their children for an uncertain future. What’s clear is that education savings have become about more than just accumulating funds—they’ve become a hedge against global economic uncertainties.
