Save for your Child Future – Perfect Registered Education Saving Plan
Every parent wants to do right for their kids, including giving them the best education possible. Post-secondary education in Canada is expensive, and as each year passes, the costs keep rising. You must plan well ahead for your child’s future education, and the best way to do so is through a Registered Education Savings Plan (RESP). An RESP is a tax-deferred, flexible investment that includes assistance from the government to help secure your children’s educational future.
Its’ never too early to save for your child’s education
Most Canadian parents leave it late when it comes to children’s future education costs, which makes them regret it in the long run. A recent study conducted by IPSOS shows that many parents do not take advantage of the country’s federal and provincial grants like the Registered Education Savings Plan (RESP), making them fail to understand if appropriately invested, the money will grow tenfold over time.
The RESP is a fantastic investment tool that allows a parent, grandparent, legal guardian, or friends and relatives to save for a child’s post-secondary education. The process is simple as well to set up. To apply, all you need is a Social Insurance Number (SIN) for the child and schedule an appointment with an RESP provider.
Benefits of an RESP
1. The earnings are tax-free, allowing you to save more money.
2. The amount in an RESP can be used to pay for your child’s education and their hostel and travel expenses, etc.
3. To help boost your RESP savings, you have the opportunity to earn grants from the government.
The most valuable gift you can gift to your children
Parents can prepare for their children’s future with a Registered Education Savings Plan (RESP) with the necessary planning and taking advantage of the government grants. Contributions can be made to an RESP for up to thirty-one years, and the RESP can be open for a maximum of thirty-six years. The best part is, even if the RESP has very little amount in it, it significantly increases the chances of the child going to a well-renowned post-secondary school; here’s the reason why; the government every year matches 20% of the amount contributed annually to the RESP.
As the contributor of the plan, the maximum lifetime contribution is $50,000. If the money is withdrawn to pay for your children’s post-secondary education, you will not be taxed, but your child will be taxed. The federal government can add up to a maximum of $500 each year with the Canadian Education Savings Grant (CESG) and a lifetime maximum of $7200. Moreover, Some companies offer 15% bonus. So, take charge of your children’s future by saving for their education through a Registered Education Savings Plan (RESP). Harpreet Puri can help explain and offer professional advice on RESP and various investment plans. Call today at