Registered Education Savings Plans

One of the greatest gifts we can give our children is a solid foundation through education. Yet the cost of providing this can be staggering. Consider the following:

  • If your child attends school away from home, costs for tuition, books, residence fees and food range from $14,500 to $27,700 per year, depending on the university and program. This doesn’t include transportation or personal expenses.
  • Even if your child lives at home, tuition and book expenses run from $5,500 to $16,600 every year depending on the university and program they attend. Once again, this doesn’t include costs for transportation or personal items.

And, these are today’s costs. Imagine what they’ll be 18 years from now for children who are born today.

Fortunately, there are options to save for your children’s education.

Registered Education Savings Plan (RESP)
This is an investment account, registered with the Government of Canada. The money you earn on your investment won’t be taxed until it is withdrawn to pay for your child’s education. Plus, children under the age of 17 are also entitled to the Canada Education Savings Grant, which is paid on the first $2,500 of contributions made every year.

There are several advantages and disadvantages to RESPs. I can go over these with you, and help you decide if this is the best option for your family. You can read more about RESPs here.

Trust Accounts
Another option is to establish a trust account for your child’s education. It is non-registered and has no contribution limits. You can set parameters on how your child accesses funds in the trust, such as limiting the amount available per year. Learn more about trusts here.

There are pros and cons with both of these options. We are here to help you sort through them all, so you can make the best decision for your family. Contact us to arrange your free meeting, and get started on making your children’s education – and future – a reality.