Saving money can sometimes be one of the most difficult things to do. Latest reports in the news say that most of us out there live pay cheque to pay cheque. So how do we invest in our children and their future? We all want to invest in our children. We want to give them a better chance or situation than we had. Isn’t that the goal of each generation?
If you graduation with Student Loans you know how horrible they are. It is horrible to be driven to succeed and accomplish to only start your career off with massive debt. I don’t want my Little One to have to take student loans and that is why saving for her future is so important to me. I want my Little One to have every opportunity and chance out there.
So where do I turn? I turn to an RESP.
The Registered Education Savings Plan (RESP) is a tax-sheltered plan that can help you save for a child’s post-secondary education. With the high cost of education, many parents, grandparents and other family and friends are recognizing the need to save well before the expenses become a reality.
An RESP combines flexibility, tax-deferred investment growth and direct government assistance to help you reach your education savings goals for your children.
As many of you might already know, the Government of Canada puts 20% into your child’s RESP calculated based on your contributions. The CESG will add 20% of the first $2,500 contributed annually for each eligible child/beneficiary, up to maximum grant of $7,200. So for everything you put in, another 20% will show up as well from a deposit from the Government. That is a pretty good deal!
RBC wants to help ensure you are knowledgeable on Registered Education Savings Plans. Here is an example from RBC on how fast your investment in an RESP can grow.
I know, all that is fine and dandy, but how do I find that $25 a week or whatever amount you are trying to put into the RESP.
Here are a few tips to help you save…..
*Have the amount come automatically off your pay cheque.
*Save your change in a piggy bank including Loonies and Toonies. It adds up fast.
*Put your Family Bonus or Universal Child Care Benefit amounts into the RESP.
*Put money into a bank account that you do not have access to with a Bank Card and when the savings justify, go deposit into the RESP.
*If you receive funds back from your Tax Return, put some of the funds into an RESP.
*When family wants to provide a present, ask them to put funds into the RESP.
As a parent, we all know too well how hard it is to afford everything for our kids. From activities to school expenses and more, we always seem to be putting money out. It really is hard to find those coins to invest in the future when the demands are so high now.
RBC know the pressures we face as parents and that is why they created RESP-Matic.
With mortgage payments, household bills, RRSP contributions and other financial obligations, it may seem difficult to come up with the savings you need for your child’s education. One of the most effective ways to reach your goals — and ensure your child’s education receives the priority it deserves — is to commit to ongoing contributions through an RBC RESP-Matic. With an RESP-Matic, you contribute to your Registered Education Savings Plan (RESP) regularly and automatically. It’s one less thing to worry about.
Remember that you have the flexibility to use the RESP for university, college, apprenticeship, non-credit courses etc., and if your child doesn’t use the funds, you can use your contributions and earnings to fund your RRSP.
I know that I am not perfect in my investing for my Little One’s future. Just remember not to beat yourself up over it. Anything and everything you can manage to put away is a step in the right direction.
So, how will you start, continue or recommence saving in your children’s education? Want more ideas, help and information, then contact RBC today: Call 1-866-233-2736 or Book An Appointment.
Disclosure: I am part of the RBC RESP blogger program with Mom Central Canada and I receive special perks as part of my affiliation with this group. The opinions on this blog are my own.