Looking On The Bright Side of Savings

Why Canadian Parents Opt for the Registered Education Savings Plan for Their Children Are you among the billions of Canadian parents who have plans of pursuing the college education of your kids? Are you baffled on how you will be able to finance their very expensive college education? For those who belong to these groups, then they should consider the Registered Education Savings Plans. To know more about it, then you are advised to continue reading this article. We cannot deny the reality that the university education and tuition of our children constantly increased along the passage of time. This is true not just in Canada but also in other countries around the world. 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. Eventhough, college education is considered as the key to ensuring their bright future but the college education costs are astronomical. Statistics show that the yearly cost of college education is projected to increase three or four times. Feeling overwhelmed and worried? The best option available is to save early for your children’s college education with the use of the Registered Education Savings Plans.
Why not learn more about Education?
Knowing More About the Registered Education Savings Plans
Why People Think Resources Are A Good Idea
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. It is regarded as the most effectual way to plan the future of children. Thanks to the existence and creation of the RESPs because it gives parents the permission to take part and to benefit from the Canadian Education Savings Grant. Data shows that every Canadian child is eligible in receiving about twenty percent of educational funds to boost their Registered Education Savings Plan. For instance, whenever you invest $100, the Canadian government will also contribute $20. It was also found that the families who belong to the poor-income bracket can obtain as much as 40% of CESG bonus. Children can only get CESG if they have RESP! Other than the ones mentioned awhile ago, are there other rewards that parents and children can reap from the RESP? 1. Parents can contribute as much as they want to as there is no limit set for their yearly RESP contributions. 2. Parents’ maximum lifetime RESP contribution is $50,000. 3. The contributions of parents for RESP aren’t 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. Should you want your children to reap the benefits showcased by RESP, then invest in the program as early as now!