Are you among the billions of Canadian parents who have plans of pursuing the college education of your kids? Are you perplexed on how you can fund their college education? Should you be one of them, then the best thing that you can do is to take into account the RESP. In this article, you will learn more about the Registered Education Savings Plans, its advantages, and ways of obtaining one for your children.
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. Researchers found that greate than ninety-three percent of the Canadian parents have the intentions of pursuing the college education of their kids. Nonetheless, with the constant rise of college tuition fees, books and the college students’ living expenses, there are already lots of parents who are doubtful if they can still pursue the college education of their children.
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. Are you worried on how you can fund your child’s college education? The best option available is to save early for your children’s college education with the use of the Registered Education Savings Plans.
The Essential Laws of Resources Explained
Knowing More About the Registered Education Savings Plans
The 9 Most Unanswered Questions about Plans
Registered Education Savings Plan is one savings tool that allows Canadian parents to save early for their kids’ college education costs. This educational tools is considered as the most effective educational investment plan to ensure your children’s future. With RESPs, parents are given permission to take advantage of the Canadian Education Savings Grant. It was also found that each child in Canada has the eligibility in receiving approximately twenty percent from the government’s educational funds to increase their RESPs. 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. Keep in mind that only children with RESP can obtain the CESG assistance from the government. Apart from the ones detailed previously, what are the other advantages showcased by the RESP?
1. Parents have no limit on their annual RESP contributions.
2. Parents’ maximum lifetime contribution for the RESP of their children is $50,000.
3. The contributions of parents for RESP aren’t 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.
Parents are advised to save as early as now so their children can benefit from the RESP program of the government!