Look way past your family’s immediate back-to-school costs of books, calculators and clothing. According to TD Bank, a small child today will be faced with approximately $80,000 in post-secondary education expenses.
Parents naturally want what’s best for their kids, but the sheer price tag of education leaves them wondering how they’re going to make it happen.
Rest assured; education is the most lucrative investment you can make in your child. According to the National Graduate’s Survey, their long-term income earning ability is up to a million dollars greater than someone without post-secondary. Plus they’ll benefit from more flexibility to pursue a career they’re passionate about.
Planning ahead using the Registered Education Savings Plan (RESP) is the best way for families to save for a child’s education.
The major benefits of the RESP are; first, money grows through the power of compounded returns; second, the growth is tax-deferred and; third, the government gives you free money toward the plan.
Start now. As soon as your child is born, or once you read this, open an RESP account for them. All you need is a Social Insurance Number for your child and a 30 minute appointment with your financial advisor.
A professional advisor will assist you in selecting the right investments for the RESP portfolio.
Contribute regularly. Every time you get paid, automatically contribute to the RESP that same day.