Since the day our younger daughter was born, she has loved money. No really. We used to catch her playing with the loose change in our house, counting it, building little homes out of coins and even turning things into pictures with pennies as their shape outline. She would carry coin purses with her all the time.
So it’s no surprise that when she learned my Sister and Brother in Law put aside a bit of savings for each of her Birthday and Holiday presents into a separate bank account, it was like the best gift ever. We joke with our family that if you want to make her happy, just put some dollar bills into an envelope. But I have always appreciated that gesture much because in 18 years when University shows up, life gets expensive very fast.
We have our own savings accounts for both our daughters and you learn pretty quickly that even if you put aside a small amount per month, $25 over the course of a year is $300. Over the course of 18 years it’s $5400. While any savings is nice, they’re estimating that a 4-year undergraduate program at a Canadian university could cost over $126,000 by the year 2034.
Let that sink in.
So how can parents and family members better prepare for this? Well I only recently began to learn about RESP’s. An RESP is a Registered Education Savings Plan registered under Canada’s Income Tax Act. Income on savings within an RESP is tax sheltered until the child is ready for post-secondary education. One of the many reason’s having an RESP can help is because the government provides grants to those who contribute to RESP’s. That means your child may be eligible for an extra $7200 over the lifetime of the RESP to put towards their education.
Heritage Education Funds can help you increase the return on your investment for your child’s post-secondary education and tailor a savings plan that works for your family. Some other great things to know about Heritage RESP’s are:
- Heritage RESPs are flexible. You can change your contribution schedule and they can customize your plan at any time.
- Heritage offers a low-cost insurance option that protects your investment. In the event of disability or death, your contributions continue to be made until your plan matures.
- Heritage Plans can assist students attending many different types of post-secondary institutions, no matter what career path your child chooses.
- Heritage allows you to transfer contributions from one child to another within the family or even choose another beneficiary.
They have a helpful calculator online where you easily see just how much you need to save and a great FAQ section to learn more about RESP’s and how they work. As well, until Dec 31, 2016 they’re having a contest where you can win up to $2500 to put towards your child’s RESP.
Join Heritage Education Funds for Education Savings Week (November 21-25) as they empower families on financial literacy and help educate everyone on the value of saving for your child’s education.
Heritage Education Funds is also hosting a Twitter party this week with over $700 in prizes to be given away!
Disclosure: This post has been completed in collaboration with Heritage Education Funds. As always, opinions and photos are my own.