knowledge topics
Foundations of Education
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Identify the key trends affecting education savings, such as:
- Cost of education
- Reliance on self-funding
- Relationship breakdown / divorce
- Longer periods of enrolment
- Levels of student debt
- Identify the costs associated with education, such as:
- Tuition and related fees
- Books and other resources
- Rent / Residence expenses
- Meal plans / food expenses
- Commuting expenses
- Explain the sources of education funding, such as:
- Savings
- Registered Education Savings Plan
- Cash flow (employment, trust, investment)
- Family support
- Government grants, bursaries
- Educational organization scholarships
- Community / corporate scholarships
- Government student loans / assistance programs
- Lifelong Learning Plan withdrawal from Registered Retirement Savings Plan
- Borrowing using credit facilities
- Define the time horizons associated with education.
- Accumulation period
- Withdrawal period
- Repayment period for student loans
- Identify roadblocks to saving for education during the accumulation phase, such as:
- Cash flow limitations
- Debt load
- Procrastination
- Reliance on government benefits
- Lack of awareness regarding cost of education
- Lack of awareness of savings programs available
- Personal attitudes / choices
- Explain how each of the factors may impact the ability to meet an education goal, such as:
- Frequency of savings during accumulation period
- Amount of savings during accumulation period
- Growth rate of assets
- Family dynamics
- Income required during withdrawal period
- Income sources during withdrawal period
- Risk tolerance
- Debt levels
- Personal attitudes
Glossary of Verbs (mouse over to see definition)
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK