It's a fairly universal fact that having kids costs money. It's also the general consensus that parents want what's best for their kids. So when Moms and Dads in Canada decide to have a baby, it's fairly common to think about the impact that a child (or an additional child) might have on family finances. Obviously, one of the biggest factors at play in this is a child's Education.
With the cost of College and University tuition on the rise, not to mention many people turning to Private or Home schooling for their children, the value of an RESP is maybe even greater than it's ever been. Saving for our children's future is something that will benefit everyone in the long run. Because let's be real here for a second - we are going to need some well educated leaders to look after us when we get old, no?
It's important to know that the earlier you start saving, the better off you will be when it comes to helping your kids financially with future endeavors. Just $25/ week over the course of 18 years can add up to $50,911.00 -- That's nothing to sneeze at! But there are other ways to save, too. Instead of having your child showered with an abundance of unneeded gifts and toys on the holidays, family members can contribute to an RESP as well. And what's more? You can receive free money from the government! The Canada Education Savings Grant will match up to 20% on the first $2,500 contributed annually. That could mean up to an additional $500 a year in your RESP, up to a lifetime maximum of $7,200!
I'll be honest. I am not a "numbers" person, so when it comes to financial planning I often find myself sitting in a banker's office, or my financial planner's office with eyes glazed over, having to force myself to pay attention and to ask questions. It's OK to ask a lot of questions when it comes to doing what's best for your kids. And sorting this out now means that at crunch time (your child's graduation) you will have MUCH less to worry about. All the help financial help you need to cover the cost of tuition fees, books and more will already be at your disposal thanks to your planning ahead. Wouldn't that take a load off?
With advice from RBC, it's easy to start. No need to be overwhelmed. 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!
With all of that being said, I'll be setting up an RESP as soon as possible for my little "Chemist" and...erm... "Batman" in progress!
You can find more great tips on saving for your child’s education here: http://www.rbcroyalbank.com/
Enter here to WIN $500 towards your child's RESP with RBC.
Do you have an RESP for your kids? What are some of your best tips for saving for your children's education? Tell me in the comments!
Disclosure: I am part of the RBC RESP blogger program with Mom Central Canada and I receive special perks as part of my affiliation with this group. The opinions on this blog are my own.
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