We all want our children to be the best they can be. For many parents that means saving for a post-secondary school where your child can discover learning, friends and interests for life. With school costs sky-rocketing it’s difficult to save enough to put them through school. This is where a Registered Education Savings Plan (RESP) comes in handy. An RESP is a long-term savings plan that offers the advantage of grants and the power of investing. And now, with the new British Columbia Training and Education Savings Grant- saving is easier than ever!
How do I open an RESP?
All you need to do is come into your local Credit Union, provide your child’s Social Insurance Number and your child’s Birth Certificate. Your Credit Union Representative will open an RESP, discuss investment options and that’s it!
How much can I contribute?
RESPS have a lifetime contribution limit for each child of $50,000. There is no annual contribution limit.
What about grants?
Grants offered by the government are a great way to build your child’s RESP. No matter what your family income is, the Canada Education Savings Grant adds 20 cents to every dollar you contribute, to a maximum of $500 each year. This grant is available up until the end of the calendar year in which your child turns 17. Depending on your family income, you may be able to access even more grant money for the RESP.
I heard about a new Grant being offered, can you tell me more about it?
On August 15th 2015, the Provincial Government introduced the new $1,200 B.C Training and Education Savings Grant for children born in 2007 or later. The grant is a one-time incentive of $1,200 available to children in B.C. when they turn six years old, and must be used for post-secondary education or training. Right now, you can ONLY get applications for this grant at Credit Unions in British Columbia.
If you haven’t already opened a Registered Education Savings Plan or applied for this new grant, come and see us! We can help you open an account and discuss all the grants that are available, how to apply, and how to maximize the power of investing to make saving for education easy!
You can read more about the benefits of an RESP here or download our RESP Brochure here. Or better, yet, give us a call or come see us and we can answer any questions you may have.