Understanding A Registered Education Savings Plan

If you’re from Canada and you have children, you have heard of a Registered Education Savings Plan. If you’re not from Canada and hear about this plan you’re going to wish you were living in Canada.

A Registered Education Savings Plan or RESP, is a plan that parents use to invest in their children’s future education.

The Canadian government pays parents of children ages newborn to five a monthly stipend of $160 per month per child in this age bracket. For ages six to 17 the Canadian government pays parents a monthly stipend of $60 per child.

If parents turn around and invest this money from the first time they are paid this money until the child is 17 and no longer receives this payment, the parents will have saved well over $20,000 toward their child’s education.

It’s important to note here that parents, friends and family can also contribute above and beyond this amount and save up to $50,000 per child if so desired.

This money, is tax free and won’t cost the parents anything to set aside and save for their child’s further eduction. You have options online

Additionally, children can apply for grants and bonds that will also go toward their education and help them to pay for college or university classes.

This is great incentive for children to take their educations seriously and work toward the goal of college or university.

It’s also a great way to save money and invest in the future of Canada. Children who take their educations seriously and focus on learning will do better in the business world.

They will be more likely to be self supporting and able to support their family. By creating an educated society, parents are investing in their own futures and helping to shape the youth of today for tomorrow.

As technology advances more students are focusing on such course work in school and these classes can be very expensive if parents aren’t keeping an eye on the trend.

By saving now for tomorrow parents are saving themselves a lot of money in the future. Locking in savings accounts as well as grants and bonds is a wise move to ensure the quality of their children’s educations.

Education is important and the more serious parents take it the more serious their children are going to take it. A registered education savings plan is a great way to save for the future.