Every month, since The Kids were born, I’ve received “child care” monies from the federal government totaling around $350. While I try not and rely on that money to pay our basic bills, I guess I do because it always gets spent. I was sad to learn that when The Kids turn six in December, I would lose the Universal Child Care Benefit (UCCB) of $200 a month. Well, I would have, but the rules have recently changed.
As of January 1, the amount for children aged zero to six will increase from $100 to $160 and kids aged six to 18 will now receive $60 (whereas they previously received nothing).
How You Can Save for Your Child’s Education
That means you will receive an extra $60 a month and a lump sum payment of $720*. If you’re like us, I’m sure that there are many things you could spend this found money on today. However, how about saving it for tomorrow by putting all of it into your child’s Registered Education Savings Plan (RESP)?
An RESP is a savings plan used by parents to help them save for their children’s post-secondary education. With the rising costs associated with sending a child to college or university, an RESP can really help.
Did you know that if The Kids begin their post secondary education in 2027 (only 12 short years from now!), the forecasted cost of an undergraduate degree is $47,000, and if they live away from home, that amount jumps to almost $102,000**. There are many benefits of saving for an RESP and the earlier you start, the more money your children can have for their future.
Benefits of Saving for an RESP
- The government provides grants (based as a percentage of your contribution up to a certain amount) although certain conditions apply to qualify for these,
- The money is tax sheltered until maturity. No tax needs to be paid until the money is withdrawn and at that time, your child will be taxed at a student rate, which is typically very little to nothing,
- Kids can focus on gaining an education, without worrying about how to pay for it.
The realm of RESPs may seem a little daunting at first, however, there are people that can help you make the right decision for you and your family.
One such company is Heritage Education Funds Inc. (Heritage), a Canadian company and one of Canada’s leading providers of group RESPs. They’ve been helping families since 1965. They also offer flexible savings options and they invest your money in lower risk things like equities and GICs. Contact a Heritage Education Fund Representative to get started towards the future that you want for your children.
Don’t forget to enter their Annual RESP Draw where you have a chance to Win 1 of 8 contributions of $2,500 towards a Heritage Education Funds RESP plan. Draw date is December 31, 2015.
Does Your Child have an RESP?
— Journeys of The Zoo (@zoojourneys) August 12, 2015
* Based on a family with two children under the age of six.
** This data refers to the needs of each child and was obtained from Heritage Education Funds Inc. website.
Disclosure: As a Heritage Education Funds Ambassador, Journeys of The Zoo received compensation in exchange for sharing our story.