The money in your RESP can be divided into three basic groups: your contributions, government grants and the income earned on both of these. There are some nuances to how all of these are treated for tax purposes, so you should plan how you take the money out of the RESP.
Peter Lewis is Vice President, Regulatory and Corporate Affairs at C.S.T. Consultants Inc. He is recognized as an expert with respect to education savings plans in Canada, and has addressed several parliamentary and senate committees on the important role RESPs play in improving access to higher education. As a proud father of seven children, three of which are currently in university, Peter has personal experience in the importance of saving for post-secondary education.
The cost of tuition can be overwhelming to say the least. For families and students trying keep afloat this year, making tuition payments is already a challenge often managed by multiple loans, jobs and sleepless nights spent studying or trying to make the grade in order to maintain a scholarship.
09/11/2015 05:05 EDT
Many Canadian families will find they have a bit more money in their pockets this month thanks to the increase in the Universal Child Care Benefit. This will be a pleasant boost to many families' bottom lines! As a dad, I get that there are a myriad of enticing ways to use that money.
07/20/2015 05:16 EDT
Although it's not too surprising, it certainly is disappointing to see the new NDP government not taking a moment to provide a second sober thought to the planned closure of the Alberta Centennial Education Savings (ACES) grant. The grant gives parents who contribute to a Registered Education Savings Plan (RESP) up to $800 to help fund their education.
07/03/2015 05:07 EDT
It's hard to believe 2014 is almost over. While many parents are busy wrapping presents, trimming the tree and visiting family this December, it's important to remember to do an annual check-up on one of your most important investments: your child's Registered Education Savings Plan (RESP).
12/18/2014 11:49 EST
November 16-22, 2014 marks the first ever Education Savings Week in Canada. Here are three reasons why we're celebrating Education Savings Week (and why you should, too!)
11/21/2014 05:58 EST
This Thanksgiving, I have to ask -- have you thanked your investors lately? That's right, your investors. Not the power brokers on Bay Street or Wall Street, but the people who were there for you from the very beginning.
10/12/2014 03:20 EDT
It's no secret that Canadian students are stressed out financially. Many graduates are taking on a significant level of student debt. Recent numbers from the Canada Student Loans Program reveal that in 2012-2013, 472,000 full-time students and 9,600 part-time students took out $2.6 billion in loans from the federal government. Between 2005 and 2012 alone, Statistics Canada also reported that student debt grew by 24 per cent. All of this reminds us that saving early for university or college should be a top priority for new parents if they want to help set their kids up for the greatest potential success.
09/13/2014 10:55 EDT
Yes, folks, back-to-school season is here. And with it comes a frenzy of shopping. This year, however, may be a little bit different. Almost half of Canadian parents say they expect to spend less than $200 on back-to-school items, with one-third of moms saying they plan to spend less than $100. So where are parents' priorities shifting to? Their children's future.
08/27/2014 05:50 EDT
Investing in an RESP early on can give you peace of mind knowing that money is there to help fund your child's education. The earlier you start, the more your savings can benefit from the power of compounding. If you start investing $210 every month for your newborn, their RESP could be worth as much as $30,743 more than if you start when your child is five.
05/02/2014 06:42 EDT
There are many different ways to invest the money inside your RESP. As a parent, my rule was simple: I did not want to take any significant risks with the money I was saving for my children's learning. I was satisfied with receiving the 20 per cent government grant, and a modest return on my money. For me, it was more important that the money be there when I needed it.
02/20/2014 05:14 EST
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