should I buy/invest in Canadian $?

[TheBeeKeeper]

Jr. is headed to college in Canada. We are in the US.
I have about 1/3 of the 4-year college costs in 529, 1/3 in cash, 1/3 will cash flow + federal loans.

Since the USD/CAD rates can fluctuate a lot would it be a good idea to buy and invest in Canadian $ now? Thinking specifically about the cash we have sitting in Vanguard money market account and doing nothing now.

If so, where would you park/invest the $?

[daverobev]

Since you have a specific need for it, it isn't such a bad idea.. but bear in mind the CAD is somewhat strong because of high oil prices at the moment (market timing and all that).

Do you have the ability/room to buy i-bonds?

Getting a CAD bank account can be a pain before being physically present. You may want to talk to RBC, TD, or BMO (Harris) who have US arms - their exchange rates won't be the best. They may do GICs (guaranteed investment certificates), but again their rates won't be the best... you might want to see if Oaken Financial will open an account for you/Jr, and get a selection of GICs based on when you'll need the cash - https://oaken.com/gic-rates/

[Freedomin5]

I did the same thing, but in reverse (Canadian studying in the US). I did a few things to mitigate exchange rate risk.

1. Worked in the US and earned USD -- student visas allow you to work up to 20 hours a week on campus. I believe the Canadian international student visa offers the same benefit.
2. Got a scholarship, paid in USD.
3. Stayed on campus and worked in the summers, earning USD.
4. Exchanged from CAD and USD as necessary to cover the shortfall.

By earning as much in the currency that I'm spending in, it helps to mitigate currency exchange risk. I'd encourage your kid to do the same, plus it would help you out not to have to shell out so much for their education.

[TheBeeKeeper]

Thank you for the great ideas!

my kiddo will open a Canadian account once they get to the campus.
They also got approved for work-study, so that should help.

[Freedomin5]

If they're in a co-op program, they should make enough during their work placements to cover their living expenses and a good portion of their tuition.