The more children learn, the more the potential to earn
A good, solid post-secondary education will go a long way to putting your RESP beneficiary on the path to long-term prosperity.
Here’s why. A study conducted by the Fraser Institute for Research showed that completing a university or college education means your child will generally earn more money in the work force. (See chart below.)
By investing in your child’s education, you’ll be helping to start your child on the right path to prosperity over the long term. Are you saving enough?
The high cost of an education
Do you have any idea what it could cost to send that special child in your life to college or university?
Example: If your child or grandchild enrolls in college or university in 18 years, you can expect the cost to be quite high for a four year program living away from home or staying at home.
Why RESPs are important
A Registered Education Savings Plan (RESP) should form an integral part of every educational savings strategy.
The reason is simple. The federal government allows you to contribute money toward the post-secondary education of a child and the assets inside the plan will grow on a tax-deferred basis.
In addition, the federal and provincial governments may also assist you with your savings by depositing grant and/or bond money into the RESP (subject to limitations) to help your savings grow even faster.
Don’t wait, start early
Planning to contribute to your child's education costs should not be left to the last minute. The earlier you begin to contribute to an RESP, the more you will be able to take advantage of compounding and government contributions.
The task of planning to finance your child’s education can require strategic long-term planning, which would be best accomplished with the help of a professional advisor. Talk to your advisor today.