If you live in Canada and have young children, you can take advantage of an Heritage Education Funds RESP to save money for their education. Going to college is crucial if you want your child to have a good future and it isn’t always possible to just save money on the side. It helps to have a solid investment vehicle to put your child’s educational savings into so it is ready when they graduate from secondary school. Read on to learn more about the benefits of the RESP savings plan.
The RESP plan is a way to invest for your child’s education. One of the great things about the plan is that the money is tax deferred. Investing in a RESP also gives you access to the Canada Education Savings Grant which can save you some additional money. Investing in a tax shelter is a wise idea because it makes it easier to save and you don’t have to pay taxes.
Sending your child to college is expensive and you want to take advantage of every type of tax savings that you can to make it easier to send your child to school. It is very difficult to get a decent job without a good education and if you save for your child’s education from the moment they are born, then the financial dent won’t be as bad. You don’t feel it so much when you are investing a little bit each month as you go along.
The key is having a good budget set up. Make sure your monthly investment into your RESP is part of that monthly budget and you won’t even know that it is gone. Saving up on a monthly basis for years is the way to go because it is just too hard to come up with all the money you need for college if you wait until your child is a teenager. You might end up needing to take out a loan if you do it this way.
Another benefit of the heritage RESP is that you can get a contribution from the government of $500 each year which is a great incentive to use this program. This savings can make your money go a lot further and makes the program even more appealing. If you want to ensure that you have enough money saved up for your child’s education, then you need to take advantage of this plan.