Paying for your Child’s Education ?

How will you pay for your Child’s Education ?

While we all understand that paying for child’s post-secondary education is an ideal investment for his/her future, however rising education and tuition fees makes us all to think: how we will pay for it? Day by day it is becoming more difficult for many families to fund the cost of post-secondary education, especially when you have more than one child.

Let’s consider the available statistics:
•$66,000 is the cost of an average 4 year college program which includes meals, tuition, transportation and accommodation costs.
•$117,000 is the estimated cost for the same program 15 years from now.
•Full-time undergraduate students pay 4 percent more in tuition in 2012 than in 2011 on the top of a 4 % increase in prior year
Thinking about funding child’s post-secondary education is more important now. Do the statistics above worry you at all? If your answer is towards “YES”; then read below:RESP – Can help you !

A Registered Education Savings Plan (RESP) is a type of savings vehicle, which is registered by Government of Canada, that an really help you to pay the cost of child’s education after high schooling including tuition costs, books, and other living expenses. Money contributed to the plan grows tax-deferred until it is taken out by the child for his/her full-time studies. Though you do not get tax deduction like RRSP here, but the money grows tax-deferred and taxes are not payable until it is used for child’s education and then it is taxed at child’s annual income which is ideally minimum at that time.There is no annual contribution limit with RESP, but there is a lifetime limit of $50,000 per beneficiary. Anyone can open RESP plan which includes parents, guardians, grandparents and relatives as well. Having an RESP plan can help you to start saving for your children’s education and help them continue their studies beyond high school. The sooner you start an RESP plan, the better you gain here.

The two most important advantages of RESP are:
1.1. Money grown is tax-deferred
1.2. Government grants are provided by Government of Canada.

Talk to Us:

Speak with us about the RESP option that would work best for your unique situation. You can also visit http://www.canlearn.ca which is a government website to know more about this.