Are you worried about not having enough money for your child’s post-secondary education?
With the rising costs associated with sending a child to college or university, many parents are concerned they aren’t as prepared as they would like to be. A four-year degree at a Canadian University costs as much as $60,000 today, and this cost is expected to rise. A wealth professional can help get you started with the right savings plan for you and your family.
Registered Education Savings Plans (RESP)
A Registered Education Savings Plan (RESP) is a government approved plan that can help you save for the ever-increasing cost of higher education. All you need to get started is your child’s social insurance number. The Federal Government contributes 20% annually on the first $2500 deposited into a RESP up until the end of the year the child reaches 17.
When your child withdraws the RESP earnings for educational purposes, the withdrawals are taxed in the child’s hands, which is typically at a low tax rate.
All savings in a RESP will grow tax-deferred until withdrawn. The lifetime contribution limit per child is $50,000.
Consider a Family Plan
Family RESP plans are also available. If you have more than one child, they can all be beneficiaries of one family plan. This is ideal in case not all your children pursue post-secondary education, or if the cost of school is not the same for each child.
Innovation Wealth Can Help
Watching your children grow and learn is one of the greatest rewards of being a parent. Helping your children get a higher education in an increasingly competitive job market is something they will forever be grateful for. Planning for tomorrow is the best way to realize your family’s education goals. The sooner you start, the more you will save.
Ask a wealth professional how to make affordable, convenient monthly contributions to a RESP and help turn your child’s dreams into a reality.
Mutual funds and related financial planning services are offered through Credential Asset Management Inc.