Do you want to pursue and to continue the college education of your children? Are you confused on how you can be able to fund their costly college education? If you are one of these parents, then you are advised to consider the Registered Education Savings Plans. Should you be interested to learn more about RESP, its benefits and requirements, then the best thing that you can do is to peruse this article further.
We cannot deny the reality that the university education and tuition of our children constantly increased along the passage of time. This sad reality is not only true for the Canadians but also for the other countries as well. Studies reveal that greater than 93% of the Canadian parents intend to pursue the post-secondary education of their children. But, with the continuous rise of their books, tuition fees and their living expenses, there are already myriad parents who have doubts on how they can go about it.
Yes, it is true that college education is skyrocketing. 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.
Study: My Understanding of Education
Definition of the Canadian Registered Education Savings Plans
The Essential Laws of Resources Explained
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. This educational tools is considered as the most effective educational investment plan to ensure your children’s future. By means of the Registered Education Savings Plan, parents can benefit from the government’s Canada Education Savings Grant. Each Canadian child is eligible in receiving 20% educational funds to increase their RESP. For example, when a Canadian parent put up $100, they can obtain $20 additional from the government. Much more, those poor Canadian families can get around 40% of the CESG bonus. Always remember that only RESP recipient children can get the CESG from the government. Aside from the things showcased beforehand, what are the other benefits of RESP?
1. There is no limit set for the yearly RESP contribution of parents.
2. Parents’ maximum lifetime contribution for the RESP of their children is $50,000.
3. Parents contribution to the Registered Educational Savings Plans are not 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.
Parents are advised to save as early as now so their children can benefit from the RESP program of the government!