Children are the hope for our future. It is no wonder why we want to make sure that our children have the best possible tools for succeeding in their personal and professional lives.
Most parents hope to be able to provide access to a post-secondary education. However, with all the budget cuts made to education through various levels of government, parents are faced with the ever-increasing costs of advancing their children’s education.
Statistics Canada has revealed that university tuition fees have risen 126% in the past ten years ! Projections indicate that in 2017 it will cost more that $76,000.00 for a four-year university program for a student living away from home.
It used to be that a post-secondary education was a choice. Now it seems to have become a necessity to ensure and keep a place in the job market. According to some Canadian studies, 2 out of 3 jobs now require a post-secondary education.
What is a Registered Education Savings Plan ?
Commonly known as an RESP, this is a financial vehicle to help you save for a child’s post-secondary education. Like an RRSP, the federal government allows you to accumulate investment income on a tax-sheltered basis until the funds are withdrawn from the plan.
Anyone who has an interest in a child’s future education can contribute to an RESP, whether it is the parent’s grandparents, godfather, godmother, uncle, aunt, or even a friend.
Government Grant
The Grant provides an extra 20% on top of the annual contributions paid into the plan, up to $400 per year beneficiary.There is a limited lifetime of $7,200 per beneficiary.
Meeting Your Needs with GIC from CITY Finance
CITY Finance Advisor can help you begin planning today.
