Do you want to pursue and to continue the college education of your children? Are you confused on how you can be able to fund their costly college education? If you are one of these parents, then you are advised to consider the Registered Education Savings Plans. In this article, you will learn more about the Registered Education Savings Plans, its advantages, and ways of obtaining one for your children.
All of us are aware of the sad fact that college education and tuition is very pricey and it keeps on increasing over time. This sad reality is not only true for the Canadians but also for the other countries as well. Research shows that more than ninety-three percent of Canadian parents have the intention of continuing and pursuing the college education of their children. However, most of them are already doubtful due to the high costs of books, tuition fees as well as the living expenses of students.
Although, the college education is regarded as the key to having sound and bright future of your children but the cost of college education is very expensive and constantly rising. Figures show that the yearly college education costs is forecasted to increase to about three or four times. Are you worried on how you can fund your child’s college education? Should you be one of them, then you are advised to save as early as now by investing in the Registered Education Savings Plans.
Where To Start with Savings and More
Definition of the Canadian Registered Education Savings Plans
A Brief Rundown of Finanes
Actually, RESP is one of the most effective and famous educational savings tool in Canada that lets parents to save early for the post-secondary educational costs of their children. It is deemed as the most effectual way for parents to ensure the future of their children. Thanks to the existence and creation of the RESPs because it gives parents the permission to take part and to benefit from the Canadian Education Savings Grant. Each Canadian child is eligible in receiving 20% educational funds to increase their RESP. For example, when a Canadian parent put up $100, they can obtain $20 additional from the government. Moreover, families belonging to the lower-income brackets can receive by as much as 40% of CESG bonus. Keep in mind that only children with RESP can obtain the CESG assistance from the government. Aside from the things showcased beforehand, what are the other benefits of RESP?
1. Parents can contribute as much as they want to as there is no limit set for their yearly RESP contributions.
2. Parents’ maximum lifetime RESP contribution is $50,000.
3. Parents’ RESP contributions are not taxable.
4. When your children are already qualified for either the full-time or part-time government educational program, then you are given permission to contribute to the RESP fund, that can be utilize birthdays and Christmas.
What are you waiting for, invest and save for the future of your children by purchasing RESP now!