Half of Canadian parents' ability to save for education impacted in the wake of Canada-U.S. trade tensions

A national survey reveals current economic challenges have created the perfect storm for many new families currently struggling to stay afloat.

TORONTO, May 29, 2025 /CNW/ - A new survey from Embark, a leading provider of Registered Education Savings Plans (RESPs), reveals that Canadian parents with young children are increasingly concerned about Canada-U.S. trade tensions and economic uncertainty, which has affected their approach to saving and their ability to save for their children's education.

The poll, which highlights the significant pressures parents with kids under the age of five face in Canada, found two-thirds (66%) of parents were concerned about Canada-U.S. trade tensions, with 60% claiming that it has changed their approach to savings. Roughly half went one step further, mentioning that tensions have affected their investment strategies (55%) and their ability to save for their child's education (49%).

"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," said Andrew Lo, President and CEO of Embark. "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. Government grants alone can match up to 20% of your RESP contributions, delivering immediate value before factoring in compound growth and investment gains.

Mounting Challenges of Early Parenthood

For many new parents, tariff anxieties are only adding to the already mounting challenges of parenthood, including a lack of sleep, financial roadblocks to investing, and the rising cost of education.

The survey found that 79% of parents with young children are regularly woken up by their kids, with 41% stating they are chronically sleep deprived (getting six or fewer hours of sleep per night). This exhaustion not only affects physical and emotional well-being but also their ability to make sound financial decisions. Over a third (37%) of tired and stressed parents admitted to regretting financial choices made while sleep deprived.

When asked what roadblocks parents face when considering opening a RESP, 32% of parents said they do not have enough money to contribute to one, while 27% fear their financial situation may change, and 19% worry about having to make regular contributions.

Additional Findings

The survey also found:

• 32% of parents think Canada-U.S. trade will get a bit better but won't go completely back to normal and 21% believe that things will permanently change for the worse.
• A little over two-thirds of parents (67%) believe it's difficult to find the time and energy to focus on both their family's current needs and long-term financial goals.
• With the cost of education steadily increasing, 60% of parents worry they won't be able to afford the rising cost of education. Embark estimates that children born in 2024 are projected to pay 36% more compared to today[i].
• Saving for their child's education is a top financial priority for 82% of parents—ranking higher than paying down debt (77%) or saving for retirement (72%). Nearly two-thirds (63%) also say they spend a lot of time thinking about how they'll afford post-secondary education, and 70% wish they had more knowledge about saving and investing for it.

Planning Through Stress and Uncertainty

While parents overwhelmingly (90%) see value in post-secondary education for their kids, many are not taking advantage of RESPs, leaving valuable government grants untapped. The survey found that only 52% of parents with children under five are actively saving for their child's education using a dedicated account.

Lo recommends families consider these four tips to navigate economic uncertainty:

1. Shift from "saving is impossible" to "every little bit counts." Starting early, even with small contributions, can unlock a world of opportunity and ensure that every child has a chance to pursue their dreams. Learn more about how your savings can grow by using our free online RESP calculator.
2. Don't miss out on free money. While it's a natural reaction to pull back in a challenging economic environment, this is exactly the time when parents should maximize valuable years of government grants and compound interest to add more to their savings. Opening a RESP online takes just 8 minutes.
3. Treat RESP as a long-term savings vehicle. It can be easy to get overwhelmed by a volatile market but a well-designed RESP should be resilient through short-term market fluctuations, maximize growth potential in the early years and reduce risk as school approaches. Learn more about our Glidepath strategy here.
4. Now is the time when risk matters. In uncertain markets, risk matters. Think about how you can strike a balance between growth and protection. RESPs offer exceptional value—you get up to an additional 20% on your savings before factoring in investment returns. Regularly saving can also smooth risk over time through dollar-cost averaging.

To learn more about how Embark can help you save for your child's education, go to www.embark.ca.

About Embark Student Corp.

Embark is Canada's education savings and planning company. With $6.6 billion in assets under management, the company is committed to empowering families along their post-secondary journeys, giving them the resources and tools they need to better save for all that comes with an education. Registered as a Scholarship Plan Dealer across Canada, the company manages almost 600,000 RESPs. Last year students withdrew over $663 million to help pay for their education with an Embark plan.

About the Survey

Burson used the Leger Opinion online panel to survey 1,000 Canadian parents with children under the age of five. The survey was completed between April 30 and May 6, 2025. No margin of error can be associated with a non-probability sample (i.e., a web panel in this case). For comparative purposes, a probability sample of 1,000 respondents would have a margin of error of ±3%, 19 times out of 20.

________________________

i https://www.embark.ca/learning-centre/cost-of-university-education

SOURCE Embark Student Corp.

Media Contact: Tinsae Woldetensae, Burson, [e-mail]