Our decision to open an RESP came from the financial analysis. The cost of education in seventeen years will be much more expensive then today and may reach the amount we cannot afford to pay when we need it most. I don’t want to see my kid who has the passion, talents, awards and a big wish to go further and learn more about what he really likes, stopped only because his parents do not have finances to pay for his education.
In seventeen years when your kid decides to continue his education, a college or university need to be paid no matter if it is financial difficulties, parent’s problems, job loss or whatever can happen that time. From other point kids should know that paying education is not only parents’ responsibility and definitely take part in this process. Kids need to know that education is valuable and needed for future success. That way they can participate in the process of making their future education a reality. We should have conversation with our kids that we want best for them and their education is important.
My brother did not have any RESP set up for him. It was very painful to see how after high school, he had to postpone his education because parents could not afford that. I think it was more like a question of budget planning. These days we should think about RESPs and use all the benefits this program brings to Canadian families.
Check it out why RBC RESPs are so important:
- Saving for a child's education is easier if you start early and contribute regularly ($25 a week can add up to $50,911** in 18 years)
- You can receive free money from the government, which is great. 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!
- Search for advice. With some knowledge, it's easy to start to talk about RESP and learn what benefits it has. 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!
- There are many ways to save for a child's education - with gifts from family and friends or a weekly contribution that fits your budget, maybe $25/week with an RESP-Matic®
- Eliminate student debt. By utilizing an RESP you can help your kids graduate debt-free!
- All those and more great tips on saving for your child’s education can be found here: http://www.rbcroyalbank.com/resp/ and rbc.com/education
Right now RBC is running a contest Grow an RESP with RBC®! to win money towards your RESP (Registered Education Savings Plan) and help your child achieve their dreams. Four prises of $500 are available to be won till October 4,2014.
Join us at the #RESPwithRBC twitter party happening on October 1, be ready to get answers to your questions related to RESP with @RBC_Canada. Plus you can win one of 6 $100 gift cards. Enhance your knowledge and happy savings to your kid’s dream future!
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.