RESP: How Canadian Children Can Benefit From It Are you among the billions of Canadian parents who have plans of pursuing the college education of your kids? Are you confused on how you can be able to fund their costly college education? Should you be one of them, then the best thing that you can do is to take into account the RESP. 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. All of us are aware of the sad fact that college education and tuition is very pricey and it keeps on increasing over time. This sad reality is not only true for the Canadians but also for the other countries as well. Studies reveal that greater than 93% of the Canadian parents intend to pursue the post-secondary education of their children. But, with the continuous rise of their books, tuition fees and their living expenses, there are already myriad parents who have doubts on how they can go about it. Yes, it is true that college education is skyrocketing. Data reveals that the annual college education costs is projected to rise by as much as three or four times. Feeling overwhelmed and worried? 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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Actually, RESP is one of the most effective and famous educational savings tool in Canada that lets parents to save early 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. By means of the Registered Education Savings Plan, parents can benefit from the government’s Canada Education Savings Grant. Each Canadian child is eligible in receiving 20% educational funds to increase their RESP. For example, when a Canadian parent put up $100, they can obtain $20 additional from the government. It was also found that the families who belong to the poor-income bracket can obtain as much as 40% of CESG bonus. Children can only get CESG if they have RESP! Apart from the ones detailed previously, what are the other advantages showcased by the RESP? 1. There is no limit set for the yearly RESP contribution of parents. 2. Parents’ maximum lifetime RESP contribution is $50,000. 3. The contributions of parents for RESP aren’t taxable. 4. When your children are already qualified for either the full-time or part-time government educational program, then you are given permission to contribute to the RESP fund, that can be utilize birthdays and Christmas. Should you want your children to reap the benefits showcased by RESP, then invest in the program as early as now!