Saving for your child’s future is crucial for them to unlock their full potential. But, it can prove challenging when other expenses are pressing, like home renovations, trips, retirement and more.
Here are some tips to make it easier to put a little aside for your child’s education:
● Using an RESP is the simplest way to save. Parents can opt for a monthly contribution or put money aside on a more flexible basis. According to Macleans Magazine, the RESP was introduced in 1972 by the federal government at the time. In 1992 a government grant was introduced that can help you build your education savings. When it comes to an RESP there are several options, including individual plans and group plans.
○ Individual plan: anyone can open an individual RESP and anyone can contribute to it; that includes parents, grandparents, friends, etc. Children’s Education Funds Inc. is one provider offering individual RESP plans.
○ Group option plans: group RESP plans pool the contributions made by a number of investors withcontributions being made according to a set schedule.
● You may also want to secure your educational investment by looking into insurance coverage like the ones offered by Children’s Education Funds Inc., which provide protection in situations like disability or death.
● Set up automatic deposits from your main account. Like with anything, putting a little aside today becomes a lot for tomorrow.
● Give less, sell more. Instead of just giving away your child’s old belongings or clothes, see if you can sell them either at a second-hand store or yard sale. Put this cash into their education fund.
● Turn gifts into donations. Grandparents and other family members can also get involved in helping parents save by turning gifting opportunities into RESP donations.
● Review your budget regularly. As your child grows, things can change. You may discover things to cut back on and can put those savings into the RESP. As well, when your child gets a bit older they can get a part-time job and use some of their earnings for their education fund. This helps them take the college experience more seriously because they are personally invested.
● While saving for your child is one of the best things you can do for their future, teaching them to save is just as important. Talk to your children about education, the costs involved and get them to contribute to their savings fund too.
Although the thought of college costs can be intimidating, parents who have a plan can help their children achieve their dreams.
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