Next to saving for retirement, the biggest financial challenge is probably saving for your child’s college education.
How much should I save?
How much should I contribute to education savings each year?
How much will a college education cost when my child turns 18?
What if my child gets a scholarship?
What if my child decides to tour Europe instead of going to college?
Can I cash out the account and take a dream vacation?
We empathize with these concerns and incorporate them into your overall financial plan. One way we implement education planning into your financial portfolio is assisting you in setting up an RESP (Critical Illness with return of premium and Whole Life Insurance with an investment built-in are two other ways). These plans are a simple way to save money for your child's education and the following benefits are tremendous:
The government will match 20% of your RESP contributions every year up to $2,500. Simply just because you are contributing to your child's education! That's $500 of free government money every year!
The child does not have control or access to the account – you do.
If the child does not want to go to college, you can roll the RESP account over to a sibling, no penalties. If no child under the plan goes to post-secondary, you can roll the RESP into your RRSP, penalties and taxes apply.
Anyone can contribute to the account.
There are no income limitations that might make you ineligible for an account.
If the child gets a scholarship, any unused money can be withdrawn without paying any penalty (just the tax).
Have you started saving for your kids' education? Do you know if it's enough to provide them the funding you intend to give them? Reach out and we'll be happy to discuss your needs and goals further.