A Registered Education Savings Plan (RESP) is designed to help you save for your child’s post-secondary education. Not only does your money grow tax-free, the government contributes generous grants (Canadian Education Savings Grant (CESG)), which adds a guaranteed 20% return to the account on your child’s behalf. The 20% return is based on eligible contributions up to a maximum of $500 a year on a $2,500 contribution. That means saving money, earns you money.
The money earned in a RESP can be used to help pay for a variety of post-secondary programs. This could include full-time and part-time university and college studies, apprenticeship programs and trade schools, as well as school-related expenses like textbooks, rent and other living costs.
With the cost of tuition on the rise, having a savings plan for your child’s education will make things feel far more manageable in the long run. So, invest in your child’s future as early as possible and maximize your savings potential with the help of a RESP specialist.
Invest in your child’s RESP plan early and get a head start on setting them up for future success!
To learn more about RESP’s and your child’s future, reach out to Karen Wallace from Knowledge First Financial.
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