Do you want to pursue and to continue the college education of your children? Are you confused on how you can be able to fund their costly 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.
All of us are aware of the sad fact that college education and tuition is very pricey and it keeps on increasing over time. This is true not just in Canada but also in other countries around the world. Researchers found that greate than ninety-three percent of the Canadian parents have the intentions of pursuing the college education of their kids. 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. Figures show that the yearly college education costs is forecasted to increase to about three or four times. Are you worried on how you can fund your child’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.
3 Savings Tips from Someone With Experience
What RESPs Are?
What Do You Know About Finanes
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 deemed as the most effectual way for parents to ensure the future of their children. By means of the Registered Education Savings Plan, parents can benefit from the government’s Canada 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 instance, whenever you invest $100, the Canadian government will also contribute $20. Much more, those poor Canadian families can get around 40% of the 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 contribution for the RESP of their children is $50,000.
3. The contributions of parents for RESP aren’t taxable.
4. When your kids are already qualified for either part-time or the full-time educational program of the government, then you are allowed to give contributions to the RESP fund, that can be perfect for use during Christmas and birthdays.
Should you want your children to reap the benefits showcased by RESP, then invest in the program as early as now!