Did you attend post Secondary School?
How did you pay for it?
Growing up I always knew I wanted to attend post secondary school, the dream of what I would take there constantly changed, but the desire to attend post secondary education was always constant. My parents set up a savings account for me when I was younger, putting aside whatever they could afford to help me achieve my dream. When I was around age 17, I got my first official job and began contributing part of my paycheck to the education fund. When I finally got to University, the saving continued. I worked two part time jobs while attending school. It was hard work but well worth it in the end. When I was graduated from University, THANKS TO MY PARENTS, I was able to walk away debt free.
Saving for your child’s education is the best gift that you can give them. It allows them access to education that will open doors and change their future. When they have completed their education, it also allows them the financial freedom (no loans or grants to pay back) to begin their life, start their career and begin a family. I want to give this same gift to my children.
Growing up, I was always awe inspired by my parents savings. I swore that I would begin education saving plans the minute they were born. Unfortunately, that didn’t happen. When I had my first son, I was overwhelmed with the salary cut and baby expenses that I didn’t have the extra money to put aside. Just as I gained financial footing, I became pregnant with my second son, throwing me back into financial turmoil. This pattern continued until the present day where I am finally in a secure job, completed my family and ready to begin saving.
When and where do I start?
START NOW!! Post secondary education is EXPENSIVE! Post secondary school costs rising dramatically year to year, future students are going to need all the help they can! When making education investments, make sure you understand what you are getting yourself into. Know the rules and stipulations about removing money and caps that are placed on annual deposits. It is also wise to consider diversifying your investments. Never keep all your eggs in one basket, as my Mom always says! Another important fact to consider is who’s name the account should be set up in. If the account is in the child’s name, they have access to it age of majority and can spend it as they see fit. If it is in the parent’s name, they not only have more control to educating the child on the proper utilization of the money, but it may put the account in a more favourable tax bracket, thus increasing tax breaks. This also allows the child to have access to more grants and scholarships at admission time.
There are three ways to save for your child’s education:
1. Investments such as stocks, savings bonds, life insurance, trust funds,etc.
2. Grants and scholarships such as government and education scholarships
What is a RESP?
An RESP stands for Registered Education Savings Plan. It is a flexibility, tax-deferred investment growth and direct government assistance to help you reach your education savings goals for your children.
- RBC RESP make saving for your child’s education simple and easy. You have the flexibility to use the RESP for university, college, apprenticeship, non-credit courses etc., and if your child doesn’t use the funds, you can use your contributions and earnings to fund your RRSP!
- Contributing for RESP is easier then you think! Gifts from relatives or friends or weekly contributions as little as $25 a month can ease the financial strain when it comes to pay the post secondary school bill.
- One of the easiest ways to ensure you are contributing to your children’s RESP is through RBC RESP-Matic program. This program gives your child’s education the priority it deserves and ensure that you contribute regularly and automatically. Set it to come off your paycheck as its deposited (or automatic withdrawn from another financial institute) and its one less expense you have to worry about each month!
Ensure your child’s education receives the priority it deserves. Start saving for your child’s education now, so that they won’t have to worry about it in the future!