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RESP: How Canadian Children Can Benefit From It

Are you among the billions of Canadian parents who have plans of pursuing the college education of your kids? Are you baffled on how you will be able to finance their very expensive college education? For those who belong to these groups, then they should consider the Registered Education Savings Plans. To know more about it, then you are advised to continue reading this article.

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. But, with the continuous rise of their books, tuition fees and their living expenses, there are already myriad parents who have doubts on how they can go about it.

Eventhough, college education is considered as the key to ensuring their bright future but the college education costs are astronomical. Data reveals that the annual college education costs is projected to rise by as much as 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.
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Knowing More About 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. Data shows that every Canadian child is eligible in receiving about twenty percent of educational funds to boost their Registered Education Savings Plan. For example, when a Canadian parent put up $100, they can obtain $20 additional from the government. Much more, those poor Canadian families can get around 40% of the CESG bonus. Always remember that only RESP recipient children can get the CESG from the government. Other than the ones mentioned awhile ago, are there other rewards that parents and children can reap from the RESP?

1. Parents can contribute as much as they want to as there is no limit set for their yearly RESP contributions.

2. The lifetime maximum RESP contribution is $50,000.

3. Parents’ RESP contributions are not 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!