For Canadians, one of the best ways to save money for a child’s education is to create a Registered Education Savings Plan. Very little interest has to be paid on the principal amount that builds up, plus the government also helps out. Let’s take a look at how this works, and why you might want to consider some of the funds that are available from the Heritage Education Funds company in Canada.
How These Programs Work
These are savings programs that have a unique twist, one that is very beneficial for the parents. They are able to build up a maximum of $50,000, and not only are they able to contribute as much as they want every month, but the government will also contribute. They will match 20% of the deposits that are made which can help build this account up even faster. They take money out of what is called the Canada Education Savings Grant to provide that 20%, and 40% for those that are low income.
How Do You Set These Up?
Setting these up is actually very easy to do. You contact a company like Heritage Education Funds in Canada and they can walk you through the process. They will show you how your money will be managed, how it will be deposited, and at what point you can start to take it out. As long as you are consistent with your payments, you will see this fund grow incredibly fast. This is going to be money that will pay for your child’s education preventing them from having to go into debt by taking out excessive amounts of loans. It’s really the best way to prepare for your child’s future, especially if you want them to get a college education.
Statistics have shown that kids with a college education are going to be able to get a job much more easily than someone that does not. It’s even better when they do not have to pay for this education. That’s why parents all over Canada are taking advantage of the RESP funding options that are available, with many of them choosing to work with Heritage Resp in Canada to coordinate and manage these accounts with them. This will also work for parents that have multiple children, allowing you to generate hundreds of thousands of dollars over the course of the next 18 years to prepare for the future.
$30,000+ is spent on a 4-year program at Canadian universities, and this is a low figure. The payments can rise exponentially leading to aggressive student loans most students are unable to handle. It’s recommended to consider the power of RESP and what it can do for your child moving forward.
The Canadian government has set up a system where students will receive assistance for those who have set their RESP up.
Let’s take a look at how the setup works and the value it brings to a child’s life before heading off to school.
What Is RESP?
Let’s commence with a good read into what RESP is for those who are still learning.
RESP stands for Registered Education Savings Plan, it’s an investment plan designed to help save for a child’s post-secondary education.
It is a comprehensive solution with additional financial benefits both in the short-term (i.e. taxes) and the long-term (Canadian government’s additional funds).
This all comes together to create a powerful investment vehicle for children.
Canadian Government’s Part
What does the government add to make it worthwhile for Canadian parents who want to give their child the best possible future?
The Canadian government invests a select percentage of funds on top of what’s present and from heritage RESP can help your family.
If a Canadian parent meets a set amount of $2500, a 20% boost will be given to this on a yearly basis. This will begin to add up over time especially for parents who start the plan early on.
All of these funds will be made available to the child as soon as they are ready to begin their post-secondary studies and can be used as they please.
The benefits are clear from the word go. It starts with the savings being set aside and accumulating interest. It provides a clear path to save money for your child’s future. Education is not cheap and therefore a plan is required to set aside funds.
The Canadian government putting in its part makes RESP a valuable commodity and a necessary one for those who have children.
Setting the child up for the future is important, and this is a good step in the right direction.
The Canadian government is ready to assist those who take initiative and set up their RESP. Millions of Canadians pursue this solution making it easier for their child to educate themselves and become productive members of society.