11.1.4 Case study: Planning for education  

Natalie and her daughter Louise managed to get by on a tight budget, but just barely. When Louise needed new clothes or extra money for her sports team, Natalie would sometimes have to work extra hours or cut other things out of the monthly expenses.

When Louise was 14, she said she wanted to study veterinary health at college. Natalie knew it would be expensive, so one day they had a talk about their family finances. Natalie explained that they would have to work together to save money for Louise's college expenses, and Louise would probably have to work after she finished high school before they would have enough money.

Together, they agreed to find ways to reduce their household expenses. They agreed to put the money they saved into a registered education savings plan, where it would grow for a few years and receive an additional government bond and grant. Louise said that when she was old enough, she would look for work assisting in a veterinary clinic and she'd put all the money she made into the education fund.

Natalie and Louise knew that they would have to spend a few years watching their money carefully, but they felt sure Louise could go to college if they stayed focused on their goal.

Lessons Natalie and Louise learned:

• Planning how to use your money is especially important when you are on a limited budget.
• Small savings can add up to help you reach your goals if you manage them effectively.
• A plan helps you work out a timeline for your goals, so you'll know when to expect to achieve them—and if you are going off track.
• Managing your finances gives you a sense of satisfaction and security.