Saving With an RESP

Disclosure: I am part of the RBC RESP blogger program with Mom Central Canada and I receive special perks as part of my affiliation with this group. The opinions on this blog are my own.

I alway knew I wanted to start an RESP for my children. I grew up knowing I would not have help paying for my education, and that limited my choices. Sadly, I never pursued secondary education. It was the same for my husband. By the time he had confidence to try for an education, we were married. It’s hard to pay for schooling when you have a young family.

Education is expensive. With a handful of children, the thought of paying for my children’s education is a scary thought. I don’t want my children to graduate with debt to deal with. Sadly, money has not always been plentiful, and I did not start an RESP as early as I would have liked for my children. Every little bit helps, but time sure passes quickly! So we need to make a long term plan. While the dollars are slowly growing, advice from an expert can help. RBC offers great RESP advice. They have experts you can speak with in person, and tools on line to see how your money can grow.

To start with, we began taking $5.00 per child per pay cheque and set up an automatic withdrawal, an RESP-Matic. It’s not much, but it is a start. Then we asked family members to spend less on gifts for the kids. Instead of buying expensive gifts, they spend half of what the budgeted and through the rest into the RESP. Kids have too many toys anyways, right? Their education is far more important. There are so many benefits to an RESP. An RESP can be used for for university, college, apprenticeship, and non-credit courses. Plus, if your child doesn’t use the funds, you can use your contributions and earnings to fund your RRSP. Not a bad deal!

There is more! Did you know that the Canada Education Savings Grant will match up to 20% on the first $2,500 contributed annually? That could mean up to $500 a year, up to a lifetime maximum of $7,200! That is a huge weight off of a child’s shoulders.

Visit the RBC site and learn more about how easy it is to start and grow an RESP for your child.


Comments

  1. Thanks for sharing about this. It’s a great way to start saving for your child’s education.

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