Making the right financial decisions often involves planning for the future. Setting money aside for various costs is essential, so that you know you’ll be prepared when the time to pay comes. One of the biggest expenses that many people have is education. Planning for future education and opening the correct bank accounts is a great way to be sure you won’t be blindsided by university bills.
It’s no secret that higher education can be expensive. Fortunately, there are financial options in place so that you can be prepared and plan for the future. Making sure that you start saving as soon as possible is important, so let’s go over one of the ways that you can do that.
RESPs
A Registered Education Savings Plan (RESP) is one of the best ways to put money aside for the purpose of secondary education. The amount that is made off this type of plan is tax-free. This makes it one of the best ways to make sure that you’re saving the necessary amount for college.
The purpose of an RESP is so that parents can get ahead on saving for their child’s education. Registering for this type of plan is very simple and should only take a few minutes. It’s best to do this as soon as possible so that you can save up more money. The Canadian government will match a percentage of the funds that are put into the account, taking some of the financial burden off of parents.
If your child then decides to begin higher education, they can use the funds in the account to do so. Starting to save early is one of the best gifts that you can give your child.
Curious About Your Options?
If you’re just now starting to save for your child’s education, then you understand that it can be challenging. Knowing how much to save, as well as what type of an account to put it into, can be confusing. We’re here to answer your questions and help you along the way so that you can feel confident in the financial decisions you’re making.
If the thought of saving for higher education feels overwhelming, let us know. We can walk you through all of the different options and make sure that you’re planning accordingly. We hope to hear from you soon so that we can discuss RESPs and if one could be the right choice for your family.