Are you among the billions of Canadian parents who have plans of pursuing the college education of your kids? Are you perplexed on how you can fund their college education? For those who belong to these groups, then they should consider the Registered Education Savings Plans. Should you be interested to learn more about RESP, its benefits and requirements, then the best thing that you can do is to peruse this article further.
It is sad to note that the university tuition and education of our kids are among those that keep on increasing over time. This is true not just in Canada but also in other countries around the world. Studies reveal that greater than 93% of the Canadian parents intend to pursue the post-secondary 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. Data reveals that the annual college education costs is projected to rise by as much as three or four times. Are you already perplexed and worried on how you can fund your children’s college education? The best option available is to save early for your children’s college education with the use of the Registered Education Savings Plans.
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When we talk about the Registered Education Savings Plan, we refer to one Canadian savings tool that enables parents to save and to invest for the post-secondary educational costs of their children. It is regarded as the most effectual way to plan the future of children. With RESPs, parents are given permission to take advantage of the Canadian Education Savings Grant. It was also found that each child in Canada has the eligibility in receiving approximately twenty percent from the government’s educational funds to increase their RESPs. For example, when a Canadian parent put up $100, they can obtain $20 additional from the government. It was also found that the families who belong to the poor-income bracket can obtain as much as 40% of CESG bonus. Children can only get CESG if they have RESP! Apart from the ones detailed previously, what are the other advantages showcased by the RESP?
1. There is no limit set for the yearly RESP contribution of parents.
2. Parents’ maximum lifetime RESP contribution is $50,000.
3. The contributions of parents for RESP aren’t 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.
Parents are advised to save as early as now so their children can benefit from the RESP program of the government!