If You Read One Article About Savings, Read This One

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Registered Education Savings Plans: How Canadian Parents and Children Can Benefit From It 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. All of us are aware of the sad fact that college education and tuition is very pricey and it keeps on increasing over time. It holds true not only in Canada but as well as the other nations worldwide. Research shows that more than ninety-three percent of Canadian parents have the intention of continuing and pursuing the college 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. 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. Are you worried on how you can fund your child’s college education? Should you be one of them, then you are advised to save as early as now by investing in the Registered Education Savings Plans.
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What RESPs Are?
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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. 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. Each Canadian child is eligible in receiving 20% educational funds to increase their RESP. It means that when parents invest $100, the Canadian government will also give $20. 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. Parents have no limit on their annual RESP contributions. 2. Parents’ maximum lifetime RESP contribution is $50,000. 3. Parents’ RESP contributions are not taxable. 4. When your kids are already qualified for either part-time or the full-time educational program of the government, then you are allowed to give contributions to the RESP fund, that can be perfect for use during Christmas and birthdays. What are you waiting for, invest and save for the future of your children by purchasing RESP now!