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.