Nathaniel Barr, PhD

With Support from CST Foundation

This report addresses a fundamental challenge facing Canadian parents: how to prepare children for an uncertain future in a rapidly changing world. Specifically, it examines whether investing in post-secondary education savings remains a sound decision amid technological disruption, evolving labor markets, and rising education costs. The research seeks to provide evidence-based clarity for parents struggling to balance immediate family needs against long-term educational investments.

The analysis draws from extensive secondary research, synthesizing data and research from an array of governmental, think tank, and academic sources. This review spans employment statistics, earnings data, health research, behavioral science research, and longitudinal studies tracking graduates. The approach prioritizes Canadian data while incorporating international evidence to strengthen findings.

The evidence reveals that post-secondary education brings substantial benefits to employment prospects, earnings potential, and career security. Graduates consistently experience better job market outcomes, with higher employment rates and protection against economic disruption and automation. The income advantages are significant and persist throughout careers, while graduates also report greater satisfaction at work, including increased autonomy, creativity, and sense of accomplishment. These career benefits reflect education's role in developing technical and adaptable thinking skills that remain valuable across changing economic landscapes.

Beyond career advantages, education's impact extends into virtually every aspect of life and well-being. Post-secondary graduates enjoy better physical and mental health, living longer lives while engaging in healthier behaviors. They form more stable relationships and create stronger family environments that benefit their children. The advantages compound across generations, as educated parents are more likely to engage in enriching activities with their children and save for their education. Graduates also demonstrate higher levels of civic engagement, contributing more actively to their communities through voting, volunteering, and charitable giving.

The financial approach to education matters profoundly. Student debt creates substantial psychological burdens that can undermine many of education's benefits. Debt-burdened graduates face constraints on career choices, often prioritizing immediate earnings over personal fulfillment or public service. They are less likely to pursue entrepreneurship and more prone to delaying major life milestones including homeownership, marriage, and starting families. The mental health toll includes increased anxiety and depression, while the cognitive burden of managing debt reduces decision-making capacity during crucial early adult years.

Together, this evidence suggests that parents should prepare for the future by ensuring children can choose their educational path without the burden of debt. Early, consistent saving maximizes the power of compound growth while reducing future financial pressure. The evidence suggests that investing in post-secondary education savings represents one of the most reliable long-term investments parents can make, providing not just financial returns, but life advantages.