Heritage Education Funds
There Should be no Limits to Supporting a Child’s Post-Secondary Education.
In a perfect world, every human being on the planet would have unfettered access to the best education possible and we’d all be better for it.
The reality, of course, is quite different.
Here in North America, we’re lucky to have an accessible and affordable public school system (something many countries unfortunately lack), but once we’re done with high school, we’re on our own.
The Globe & Mail estimates that by 2033, the cost of an average four-year degree or diploma could exceed $122,000 (that’s tuition plus living expenses).
Even factoring in inflation, that’s a staggering figure.
As parents, we all want the best for our kids and we encourage them to do well academically, but there comes a time when they need our help financially (a summer job mowing lawns may build character, but it’s not so great for the billfold).
For your money, Registered Education Savings Plans (RESPs) are the way to go.
RESPs have been gaining a significant amount of traction over the past few years, and with good reason. Not only do they provide a tax-sheltered environment for the money you invest, they also allow you to take advantage of compound interest and helpful government grants such as the Canada Education Savings Grant (CESG). Should you qualify, the Canadian government will contribute 20% on top of what you invest in the plan, which can add up to an extra $7,200 over the life of the plan.
And that’s not even factoring in the provincial grants that can go along with it, depending on where you live and if you qualify.
Check out DollarsnSense.ca powered by Heritage Education Funds for more information on saving for your children’s post-secondary education.