|Some of the RESP basics|
Education Savings Plans (RESP) provide for tax-sheltered growth of
your RESP investment.
Of course, there's more to know: Who can contribute? What are the tax implications? see our "Need to know more" section below. How much do you think you'll need to save to reach your goals of providing for your children's education? Use the Human Resources Development Canada Education Savings Calculator to find out. Then, contact a financial advisor to learn how to apply.
TIP: Did you know that to be eligible to receive the CESG, the beneficiary must have a Social Insurance Number? You can obtain a SIN for your beneficiary by downloading a copy of the SIN Application Form from Human Resources Canada which also provides more information about the application process.
to know more...
An educational RESP for rising costs. Which do you choose?
We are all well aware that the cost of post-secondary education keeps increasing. For parents or grandparents who wish to assist in financing a child's education, one of the key problems faced is choosing the best investment vehicle to achieve the desired goal. For many the dilemma is between choosing an RESP.
Start saving now for your children's education
If you're hoping your children will get a higher education someday, get ready for a shock. When you take everything into consideration, the total cost for a diploma or degree could be terrifying. In fact, the 1995-96 student budget prepared by the Canadian Federation of Students allocates $8,890 for tuition, books, rent and food. Assuming inflation continues at three per cent per year, a four-year undergraduate degree in 2014 will cost more than $65,000. CDN.
Beware of tax implications of gifts to grandchildren
Well meaning grandparents often make investments in their grandchildren's names to provide a future nest egg or to help defray the expected high costs of a College or University education. Registered education plans are sometimes used for the latter purpose but these have some restrictions and the possibility of forfeiture of any income earned if the funds are not used for educational purposes at a recognized institution.
Education Savings Calculator
Do you want to know how much you'll need to save then this education calculator is designed to help you reach your goals of providing for your children's education? Education Savings Calculator