The Rachel Notley government has shown no reluctance to increase spending on core areas such as education since sweeping to power May 5.
So it’s odd the premier hasn’t chosen to change course with the decision to wrap up the short-lived Alberta Centennial Education Savings Plan, the much-ballyhooed initiative launched by Ralph Klein in 2005 to celebrate the province’s centenary.
The program deposited $500 into a registered education savings plan for every child born in Alberta, as well as $100 contributions at ages eight, 11 and 14. The key was that the latter deposits were only made by the Alberta government if matching amounts were produced by the family. So while it was free money for a good cause, parents or other forward-thinking family members had to display a commitment to saving for a youngster’s education too. Call it a partnership, if you will.
The program has been under review for some time and is slated to end July 31. Given the new government’s apparent commitment to education, it seems odd that the NDP would shutter the Alberta Centennial Education Savings Plan, knowing the good purpose the money is used for.
The Tories, and now the NDP, said Klein’s initiative was being cancelled because families of limited financial means weren’t taking advantage of it. Surely, the solution would have been to promote the program better and provide assistance, if necessary, with the paper work — not do away with a program that encourages parents to save for their children’s post-secondary education.
Why would a government — of any political stripe — not want a family to establish a financial plan early on that grows over time so their children have a head start in becoming a hairdresser, welder, school teacher or engineer? We’re talking about asking parents to come up with a modest $100 at three points in a child’s life, after all.
The government says that “accessing the grants requires a higher level of financial literacy and engaging with banks or financial advisers.”
Again, it would seem that learning how to deal with financial institutions and knowing about investments and the cost of post-secondary education would be skills the government would want to nurture. It’s an abrogation of duty to kill programs because some people have a hard time grasping their merits or don’t like dealing with banks or credit unions.
“Investing in skills and education is the single best investment our province can make to ensure our future prosperity,” the NDP said earlier this month in its throne speech.
That’s demonstrated, at least partially, by helping parents to save for their children’s post-secondary education.
