Are you one of the myriad Canadian parents who intend to pursue and continue the college education of your kids? Are you perplexed on how you can fund their college education? Should you be one of them, then the best thing that you can do is to take into account the RESP. 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. It holds true not only in Canada but as well as the other nations worldwide. 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. Statistics show that the yearly cost of college education is projected to increase 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.
Interesting Research on Education – What You Didn’t Know
What RESPs Are?
Discovering The Truth About Plans
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. This educational tools is considered as the most effective educational investment plan to ensure your children’s future. 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. Always remember that only RESP recipient children can get the CESG from the government. Aside from the things showcased beforehand, what are the other benefits of RESP?
1. There is no limit set for the yearly RESP contribution of parents.
2. Parents’ maximum lifetime RESP contribution is $50,000.
3. Parents’ RESP contributions are not 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!