Start Saving for Your Child’s Education Early On

start saving for your child's education early!

Have you started saving for your child’s education already? If you haven’t then you should consider opening an RBC Royal Bank® Registered Education Savings Plan account (RESP).  The RESP is a tax-sheltered education savings account that can help you save for your child’s education after high school.

Starting a savings plan early and contributing regularly is very important, whether or not your child decides to go to college or university. RESPs are registered by the Government of Canada and through the Canada Educations Savings Grant (CESG) you can get up to $500 a year in government grants for a total of up to $7,200 (the government will match 20% of the first $2,500 contributed each year for eligible children).

I opened a RESP for my son right after he was born and we have been making monthly contributions that come out of our account automatically ever since. The money goes straight to the RESP account along with the government’s 20% match. I really don’t have to think about it and I often forget about it, until I receive my statements and realize how much money we have saved already.  It really gives me peace of mind to know that we are preparing for his future and we will help him succeed and do what he loves when the time comes.

You can start by investing a realistic amount of money each month, it doesn’t have to be a lot of money. Can you believe that $25 a week can grow to over $50,000 in 18 years? Pretty amazing! Besides, there is no reason not to take advantage of the free money from the government and set up the CESG.

Meeting an RBC® advisor to get the right advice for your situation is a great first step. The advisor will help you understand your goals and recommend the best investment strategy to suit your family needs. And there is nothing easier than setting up your account and forgetting about it, be sure to ask about the RBC RESP-Matic® plan to make your contributions automatic.

Disclosure: I am part of the RBC RESP blogger program with Mom Central Canada (#SaveWithRBC) and I receive special perks as part of my affiliation with this group. The opinions on this blog are my own

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Angela V

Founder and Writer at One Smiley Monkey blog
Hi, my name is Angela and I am a Canadian mom living in Vancouver with my wonderful husband and two happy little boys. I am the founder and primary contributor behind One Smiley Monkey. Welcome to my blog!
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13 responses to “Start Saving for Your Child’s Education Early On”

  1. Donna L. — September 7, 2013 @ 8:38 pm (#)

    We opened an RESP when both of our girls were born, really easy way to save for their education.

    Reply

  2. SusanVT — September 7, 2013 @ 9:29 pm (#)

    I am expecting and I will look into opening one as soon as baby arrives. Thanks for the post.

    Reply

  3. Marlene C. — September 8, 2013 @ 9:41 am (#)

    So awesome that the government matches your contributions.

    Reply

  4. tennille — September 8, 2013 @ 10:43 pm (#)

    Finally got started with RESPs this year. Hoping that the provincial gov’t is still doing the $1,000 thing when our boys turn 6.

    Reply

  5. fleur — September 9, 2013 @ 7:55 am (#)

    It is never too early to start !

    Reply

  6. Jeannie — September 10, 2013 @ 7:50 am (#)

    One of the first thing we did when each of our boys were born was to start a RESP for them.

    Reply

  7. jan — September 10, 2013 @ 10:38 am (#)

    If your child doesn’t go to post secondary or doesn’t use it all, you still keep your money and interest too. Win all around. You simply lose what the amount the gov put in.

    Reply

  8. J — September 12, 2013 @ 7:22 pm (#)

    I love that the government matches contributions. Education can be expensive and anything to take the sting out of the costs is welcomed.

    Reply

  9. bree — September 14, 2013 @ 10:14 pm (#)

    rbc gives good service, resps are a good investment for your childs education to give them the ability to be independant and have a good life

    Reply

  10. jessica s — October 16, 2013 @ 6:58 am (#)

    money is tight but it will probably only get harder, thanks for the push to open an RESP!

    Reply

  11. Michelle F. — November 8, 2013 @ 1:30 pm (#)

    will definitely be looking into this for my daughter.

    Reply

  12. Sarah Coenen — August 5, 2014 @ 6:09 pm (#)

    Sound, wise advice!

    Reply

  13. kathy downey — November 20, 2015 @ 1:28 pm (#)

    If you have not started yet its not too late to starting putting some away

    Reply

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