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