The more children learn, the more they earn
A good, solid post-secondary education will go a long way to putting your child on the path to long-term prosperity.
Here’s why. A study conducted by the Fraser Institute for Research showed that completing a university or college education means your child will generally earn more money in the work force. (See chart below.)
By investing in your child’s education today through an AIC RESP, you’ll be starting the child on the right path to prosperity over the long term.
The high cost of an education
Do you have any idea what it could cost to send that special child in your life to college or university?
Example: If your child or grandchild enrolls in college or university in 15 years, you can expect the cost to be as much as $130,000 for a four-year program for a student living away from home. Living at home for those same four years could still cost a student about $100,000.
The importance of saving
A Registered Education Savings Plan (RESP) should form an integral part of every educational savings strategy.
The reason is simple. The federal government allows you to contribute money toward the post-secondary education of a child and the assets inside the plan will grow on a tax-deferred basis.
In addition, the federal government will also assist you with your savings by depositing grant money into the RESP (subject to limitations).
Don’t wait, start early
Planning to contribute to your child's education costs should not be left to the last minute. The earlier you begin to contribute to an RESP, the more you will be able to take advantage of compounding and government contributions.
The task of planning to finance your child’s education can require strategic long-term planning, which would be best accomplished with the help of a professional financial advisor. Talk to your financial advisor today.
