Registered Education Savings Plans: How Canadian Parents and Children Can Benefit From It Are you among the billions of Canadian parents who have plans of pursuing the college education of your kids? Are you perplexed on how you can fund their college education? For those who belong to these groups, then they should 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. All of us are aware of the sad fact that college education and tuition is very pricey and it keeps on increasing over time. It holds true not only in Canada but as well as the other nations worldwide. Researchers found that greate than ninety-three percent of the Canadian parents have the intentions of pursuing the college education of their kids. But, with the continuous rise of their books, tuition fees and their living expenses, there are already myriad parents who have doubts on how they can go about it. Eventhough, college education is considered as the key to ensuring their bright future but the college education costs are astronomical. Statistics show that the yearly cost of college education is projected to increase three or four times. Are you already perplexed and worried on how you can fund your children’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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What RESPs Are?
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Actually, RESP is one of the most effective and famous educational savings tool in Canada that lets parents to save early 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. For instance, whenever you invest $100, the Canadian government will also contribute $20. Moreover, families belonging to the lower-income brackets can receive by as much as 40% of CESG bonus. Children can only get CESG if they have RESP! Apart from the ones detailed previously, what are the other advantages showcased by the RESP? 1. Parents can contribute as much as they want to as there is no limit set for their yearly RESP contributions. 2. Parents’ maximum lifetime 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. Parents are advised to save as early as now so their children can benefit from the RESP program of the government!