$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.