Planning for your children’s educational needs in Canada
Do you know how much it costs to send your kids to university in Canada? By 2035, Moneysense Magazine estimates university tuition to cost $17,200/year. That’s $68,800 for four years of education for each child. A Registered Education Savings Plan (RESP) is an educational investment account that allows parents and other family members to receive 20% ($500) free government grant on the first $2500 RESP annual contribution they make towards each child’s education. Government grant matches will continue until the end of the year the child turns 17. $3000 x 17 yrs = $51,000. You’re still a little short…
Strategies to fund your children’s RESP:
- Find a financial advisor who is diligent in helping you budget for your children’s education, apply for all available government RESP grants, and regularly oversee the investments in the RESP. Our team can help.
- Invest in RESP-specific investments that have proven to generate good and steady investment returns, and designed to become more conservative as your child gets closer to university.
- Invest a portion of the monthly tax-free Canada Child Benefits towards the $2500/yr RESP contribution.
- For each child born 2006 or later, we can help you apply for the $1200 BC Training and Education Savings Grant for the RESP. It’s a one-time free grant offer from the BC government.
- Maximize the RESP with $2500/yr for each child during the initial lower income years. Lower income families can may qualify for the Additional Canada Education Savings Grant which can provide a 30-40% grant match on the first $500 you contribute each year.