How to save for your children’s education
Studies show that a higher education results in higher income and better life fulfillment. As parents, we want to make sure our kids are going to have those options and open as many doors as we can for them.
RESPs and trust accounts are the major way parents are saving for their children’s educations. We set up both for our clients and invest them, usually, in a lower risk strategy because they are generally required at a certain time no matter what.
Are RESPs right for your family?
Simple answer – maybe.
Retirement Education Savings Plan contributions receive a minimum 20% Canadian Education Savings Grant (CESG) match up until $2500/yr.
The government of Canada will match your savings inside an RESP. The match is called the Canada Education Savings Grant (CESG). Everyone gets the 20-per-cent match on $2,500 contributed per child per year, but if your income is lower, you can get a 30-per-cent or 40-per-cent match on the first $500 saved each year.