Are you one of the myriad Canadian parents who intend to pursue and continue the college education of your kids? Are you baffled on how you will be able to finance their very expensive college education? If you are one of these parents, then you are advised to consider the Registered Education Savings Plans. Should you be interested to learn more about RESP, its benefits and requirements, then the best thing that you can do is to peruse this article further.
It is sad to note that the university tuition and education of our kids are among those that keep on increasing over time. It holds true not only in Canada but as well as the other nations worldwide. Researchers found that greate than ninety-three percent of the Canadian parents have the intentions of pursuing the college education of their kids. However, most of them are already doubtful due to the high costs of books, tuition fees as well as the living expenses of students.
Although, the college education is regarded as the key to having sound and bright future of your children but the cost of college education is very expensive and constantly rising. Data reveals that the annual college education costs is projected to rise by as much as three or four times. Are you worried on how you can fund your child’s college education? The best option available is to save early for your children’s college education with the use of the Registered Education Savings Plans.
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Definition of the Canadian Registered Education Savings Plans
Getting To The Point – Plans
When we talk about the Registered Education Savings Plan, we refer to one Canadian savings tool that enables parents to save and to invest for the post-secondary educational costs of their children. It is deemed as the most effectual way for parents to ensure the future of their children. With RESPs, parents are given permission to take advantage of the Canadian Education Savings Grant. Data shows that every Canadian child is eligible in receiving about twenty percent of educational funds to boost their Registered Education Savings Plan. It means that when parents invest $100, the Canadian government will also give $20. Much more, those poor Canadian families can get around 40% of the CESG bonus. Children can only get CESG if they have RESP! Aside from the things showcased beforehand, what are the other benefits of RESP?
1. Parents have no limit on their annual RESP contributions.
2. Parents’ maximum lifetime contribution for the RESP of their children is $50,000.
3. The contributions of parents for RESP aren’t taxable.
4. When your kids are already qualified for either part-time or the full-time educational program of the government, then you are allowed to give contributions to the RESP fund, that can be perfect for use during Christmas and birthdays.
Parents are advised to save as early as now so their children can benefit from the RESP program of the government!