RESP: IT’S TIME TO RAISE MONEY VIGILANTLY ALONG WITH YOUR CHILD
Do you love your child? Of course, Yes. Do you care for their life? Yes. Are you concerned about their present safety? Yes. So, how about presenting them with a safe and prosperous future?
Did you know? Registered Education Savings Plan (RESP) is the best way forward to provide your children with a potential future when they embark on their post-secondary education. Why? There are umpteen reasons attached to this, most importantly, it is a fool-proof step which ensures, you as parents, don’t live in fear of running out of money when you require it the most, i.e. at the time your child is ready to step into college life with hefty annual fees likely to burn a big hole in your pocket. Present ultimately moves to the future. It’s time to start investing in your child’s future by adopting a practice of pulling out a little fraction of money from regular home expenses and put into RESPs. These steps are extremely crucial especially for working parents who delicately juggle a professional career and performing family errands through the years.
MAKE REGULAR CONTRIBUTIONS
After opening an RESP (Registered Education Savings Plan), up to $50,000 per child can be saved for their post-secondary education which is exempted from tax ambit as well until it is withdrawn by the beneficiary when he/she turns 17.
With no specific clause attached to the contribution schedule, Flexible RESPs allow parents to change or customize their contribution as per the expenses incurred in a particular month. Owing to this privilege, there is no added burden on the parents to limit their expenses and enhance their savings.
EARLY SAVINGS, MORE BENEFITS
Saving early as your child starts growing gives you an added advantage, for once your child finishes high school, a hefty amount will be piled up in their savings account, making parents feel relaxed and comforted about their child’s future. There may be many hiccups while making routine contributions to RESP, but do remember, good things take time to show their fascinating colors.
AVOID WASTAGE, USE MONEY WISELY
It is often seen that relatives come with loads of expensive presents which serve no purpose in the long run. So, in lieu of accepting such lesser beneficiary gifts, you can urge your kith and kin including children’s grandparents to contribute to your child’s RESP. Not stopping here, anyone in the family can open RESP for your child and make them beneficiary. Reap the benefits of wise plans in the future.
In a nutshell, the idea is about saving early and contributing often to let your children breathe freely and get peace of mind as they set foot on their post-secondary educational journey backed by reliable financial deposits. Do remember, little drops of water make a mighty ocean. So, contribute some money into your child’s RESP and get the momentum going even if it is small as it is going to look huge & give you immense satisfaction in the times to come.