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10 Great Reasons to Start an RESP for Your Child
Saving for your child’s future is a labour of love that you will never regret down the road. As a mother who has saved for all five of her children’s educations in the form of a Registered Education Savings Plan (RESP), it has filled me with immense peace of mind. Read below for 10 Great Reasons to Start an RESP for Your Child.
1. Affordability – If you can afford the cost of five extra cups of coffee each month, then you will be able to put away the minimum amount required for your child’s RESP. Although the minimum monthly RESP investment is $25, you may contribute more if finances permit.
2. Simplicity – Once you decide on an amount to contribute to the RESP, it can simply be withdrawn from your bank account automatically each month, if you so choose.
3. Money Matching – The basic Canada Education Savings Grant (CESG) will match 20% of your annual RESP contribution, up to a maximum of $500 each year for each child. The lifetime limit for the grant is $7,200. Additional CESG grants may be available, depending on your income.
4. Peace of Mind – As mentioned above, knowing that money has been put aside for your child’s post-secondary education affords tremendous peace of mind. By planning ahead, the uncertainty is removed from the equation and all that is left are knowns: my child will have money for school, the amount of money is certain, and the money will be used for post-secondary education.
5. No Lump Sums - By starting your child’s RESP at birth, the amount is spread out quite comfortably over 17 years—and you will never have to produce a large lump sum for tuition.
6. No Regrets – Investing in your child’s future by putting away for their education is a prospect you will never regret—and you can be assured that the money is being spent wisely.
7. No Hardship - Your child will not have to experience the financial hardship that often goes hand-in-hand with student loans.
8. Follow Their Dreams – With an RESP in place, your child will be able to follow his or her dreams—without being limited by funds. Sadly, some dreams do cost more than others: like the dream of being a doctor, lawyer, or scientist.
9. So Little Goes So Far – As the minimum monthly RESP amount only adds up to a week’s worth of coffees, it is doubtful that you will miss the money. However, add those coffees up for 17 years, collect 20% from the CESG, and that’s $6120 already—without adding any annual compound interest!
10. Your Child Will Thank You – Setting up an RESP is one profound way you can positively influence your child’s life and future. And your child will thank you for it.
CONTEST (~OVER~)
WINNER: James R.
WIN a $25 Tim Horton’s gift card from SnyMed.com – sponsored by Heritage Education Funds. Contest open to Canada - excluding Quebec, and ends on Tuesday November 11th, 2014.
How to Enter:
Leave a COMMENT below stating something that you have saved up for before (a car, a present, a toy, etc). OR, tell me one benefit of an RESP . Then use the form below to enter the contest. BEST OF LUCK!
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