Do you want to pursue and to continue the college education of your children? Are you perplexed on how you can fund their college education? If you are one of these parents, then you are advised to consider the Registered Education Savings Plans. Should you be interested to learn more about RESP, its benefits and requirements, then the best thing that you can do is to peruse this article further.
We cannot deny the reality that the university education and tuition of our children constantly increased along the passage of time. This sad reality is not only true for the Canadians but also for the other countries as well. 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.
Eventhough, college education is considered as the key to ensuring their bright future but the college education costs are astronomical. Data reveals that the annual college education costs is projected to rise by as much as three or four times. Are you worried on how you can fund your child’s college education? Should you be one of them, then you are advised to save as early as now by investing in the Registered Education Savings Plans.
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Definition of the Canadian Registered Education Savings Plans
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When we talk about the Registered Education Savings Plan, we refer to one Canadian savings tool that enables parents to save and to invest for the post-secondary educational costs of their children. It is regarded as the most effectual way to plan the future of children. With RESPs, parents are given permission to take advantage of the Canadian Education Savings Grant. Each Canadian child is eligible in receiving 20% educational funds to increase their RESP. It means that when parents invest $100, the Canadian government will also give $20. It was also found that the families who belong to the poor-income bracket can obtain as much as 40% of CESG bonus. Children can only get CESG if they have RESP! Aside from the things showcased beforehand, what are the other benefits of RESP?
1. Parents have no limit on their annual RESP contributions.
2. The lifetime maximum RESP contribution is $50,000.
3. Parents contribution to the Registered Educational Savings Plans are not taxable.
4. The moment your children are qualified for either full-time or part-time education program, then you are given permission to give contribution to the fund, that can be used for birthdays and Christmas.
What are you waiting for, invest and save for the future of your children by purchasing RESP now!