Financial Resources and Tax Breaks to Help You Pay for Private School

As a parent, making the decision between public and private school often comes down to finances. We understand that the monetary implications of enrolling your child in private school can be overwhelming, so we have compiled a list of resources to help you lessen the burden of the cost associated with private education.

There are several community resources at your disposal that you may not be aware of. Fore example, smaller communities may assist families in sending local children to private school if they have the resources to spare. This type of financial assistance most often comes from fundraisers held by community groups like the Rotary Club. At some private schools, current students may raise money to help pay for another child’s tuition costs. This is something worth exploring at the institution of your choice.

Grants are another tool you can use as a parent to help pay for private school. In addition to a variety of government grants at your disposal, there are also both need-based and merit-based grants provided by many private schools. To receive need-based grants, or bursaries, families must be able to provide proof that they cannot afford the full institution cost. Merit-based grants, or scholarships, are assessed based on entrance exams, transcripts or various other examples of demonstrated student success.

Last but not least, there are several tax breaks at your disposal. Did you know that by setting up a trust sanctioned by the Canada Revenue Agency, you could potentially save over 20 percent in taxes? Trusts are subject to lower tax rates and enable you to create a situation where the government helps you pay for your child’s school. In Canada, there is no tax on gifts. If you have another family member who is interested in helping you pay for the cost of tuition with a financial gift, you will not have to include this amount as part of your income during tax time, reducing your overall taxes. If you opt to send your child to a faith-based private school where tuition counts as a charitable donation, you will receive a tax credit from the government. Talk to your accountant to find out more about the tax breaks available to you.

To learn more about the resources available to help you pay for your child’s education, click here.