Many parents have recognized the benefit of turning their monthly government child payment of $160 for newborn to five years of age and $60 monthly payment of six to 17 years of age payments into a savings plan for their children’s educations.
By setting up a Registered Education Savings Plan or RESP, they are setting their children on the track to further their education and have it all paid for by the government. You have options online.
Over the course of a child’s life this investment will grow and it can be over $20,000 by the time they graduate high school. parents can add even more to the amount if desired and the limit that is currently set is set at just over $50,000.
This money is tax free and won’t be taxed until the student takes the money out to pay for college. At this time they will be charged a small tax on the amount that they are removing.
Additionally, others can help contribute toward the child’s education and the child can earn grants and bonds toward this education as well.
It’s sad that other countries don’t follow this trend and encourage and help families to put their kids through college in this fashion.
Imagine if all of the world had such great educational opportunities for their children. Getting a good education is tantamount to being able to support oneself and a family.
As more and more parents are recognizing this need they are helping their children out before it’s too late. By the time these children graduate from high school they are ready to pay for their college and university courses.
This ensures that they will further their education and not become a burden to society in their later years.
It’s not always easy to budget and invest money accordingly however, those parents that have turned toward this trend are finding that once they begin, it’s actually fun and exciting to see this money grow on a monthly basis.
The more they make their money work for them, the more likely they are to help steer their student toward furthering their educations.
Students can get on board as well and invest some of their part time earnings into the funds as well. A Registered Education Savings Plan is a great way to ensure that students are taken care of financially when they choose to further their educations.