The holidays are upon us. Which means it’s time to start wrapping up our Christmas shopping, finish decorating the tree, and getting ready for the annual Christmas feast (which may look a little smaller this year with safety guidelines). But do you know what the best gift to give your child is? The gift of an education. What better way to celebrate the holidays than by getting your child’s education fund up and running with an RESP account? Not only is it an account that you can contribute to as their parent but, others in your family can buy them for your child as well which might mean less clutter under the tree this year.
What is an RESP?
A Registered Education Savings Plan (as the name suggests) is an investment account dedicated to saving money for a child’s education. So, whether you’re planning on having children in the near future or just had a newborn baby, save yourself the future stress of trying to figure out how to afford your child’s or children’s tuition costs by saving for it now. The perfect gift that not only your child will thank you for later, but a gift you will thank yourself for later too.
What are the benefits of an RESP?
One of the amazing benefits of an RESP account is it’s an investment account that allows your money to grow – tax-free! That’s right, no taxes on capital gains and no income taxes on interest. An even bigger bonus with an RESP account is the government will actually pay YOU money for saving, and you could be eligible for up to a $7,200 grant over the life of the plan.
When you open an RESP account, you contribute money to the investment account every year. The government then adds 20% on top of that, up to a maximum contribution of $2,500/year. So, if you’re contributing the maximum every year, that’s an extra $500 annually from the government that helps your children pursue higher education!
How do you get started?
Post-secondary is only getting more and more expensive each year – so gift your child with the best gift of all – lowering the cost of their education! By putting away a small amount each month into your child’s RESP account, you’ll be saving yourself a lot of stress, time, and money in the long run. Plus, who doesn’t love tax free money and money from the government?!
If you want to learn more about how an RESP will benefit you or if you want to open an RESP account this year before Christmas, I’m your guy! Along with being a professional mortgage broker, I’m also a financial advisor who knows how to make the most of your money when it comes to investing wisely while implementing tax-saving strategies. Give me a call today to set up a virtual meeting at (705) 315-0516 and let’s make the holidays merrier and brighter by investing your money in something worth saving for!