With rising costs of living and education more and more people are taking advantage of the Registered Education Savings Plan (RESP).
In Canada we have a program to help us save for education by offering an incentive program called the Registered Education Savings Plan (RESP).
When purchasing an RESP there is a few things one needs to understand.
1) How much does education cost - There is a direct corelation between how much you save and how much you will have in the future. Many people open an RESP, put a bit of money in and expect that it will cover costs of education in the future. It is important to have an idea of how much money you want and need in the future and save accordingly
2) The grant program - We have two grant options in Canada.
Canadian Learning Bond -
Canadian Education Savings Grant - 20% grant to a maximum contribution of $2500. So the most you will get is $500. In your lifetime you can contribute $50,000. If you miss a year, you can buy one year back at a time.
3) The investment options - We have the following options;
- Scholarship Plans
- Guaranteed Investment Certificate (GIC)
- Mutual Funds
- Segregated Funds
There is pro's and con's to each option. Our job is to educate you enough on the options so you can decide what is the right solution for you.
For more information on RESP's check out these great resources;