Wondering about opening an RESP for your child or children? I recently connected with Darrell Weibe from Heritage Education Funds and he shared some great informatiom about starting an RESP.
The 5 Ws of RESP (Registered Education Savings Plan)
What – RESPs are education savings vehicles registered by the Federal Government to help families of young children save for their children’s post-secondary education. Savings plans are eligible to receive the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB).
Why – The cost of 4 years college/university for children born in 2012 is estimated to be between $100,000 and $150,000. Families without a plan in place have very few options to allow their children an education beyond high school. People don’t plan to fail, they fail to plan.
When – The earlier a child is enrolled in a RESP, the longer the savings have time to grow. Enrolling a child before their 1st birthday, will allow the power of compound growth to benefit a plan in terms of increased plan contributions, increased CESG, increased investment growth within the RESP, and increased growth on the CESG.
Who – Anyone can start saving for a child. Parents, Grandparents, other family members, and friends can all contribute to a child’s RESP and attract the applicable grants toward that child’s successful future.
Where – A RESP can be started through most Financial Institutions or through a RESP company that specializes in education savings plans. Typically, RESP companies offer greater plan safety, flexibility, stability, and investment performance in comparison with those plans sold through a Financial Institution.
Further details, and a no-obligation in home consultation can be arranged by attending a Beyond The Bump workshop.
To register for our upcoming Beyond the Bump workshop visit our Beyond the Bump page.