At the start of a new school year, there are plenty of things to keep parents with young children busy (even busier than usual!). Shopping for school supplies, establishing new routines, and managing those first few anxious weeks as your children adjust to new teachers and new classmates can be exhausting. But each September you get one year closer to graduation and the transition to university. With post-secondary education costs in Canada steadily rising, it is becoming more and more important to start saving early for your children’s education.
Do you have a plan in place which allows your family to achieve its education goals? If not, you might want to consider a Registered Educational Savings Plan (RESP) for your children. Not only will you earn tax deferred income on the money you invest, but you will receive grants based on the amount you contribute and the ability to earn income on the grants as well. When the funds are withdrawn, any earnings will be taxed on your child’s name thus minimizing the tax paid.
The money saved in the RESP will go a long way to covering the cost for your child’s education.
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If you would like to know more about RESPs and strategies for savings for your family’s future, please contact an Arbutus Financial Team member.