This week is Education Savings Week. Are you setting enough money aside for when the time comes to send your little learner off to trade school, college or university? Or maybe you’re wondering how soon you should start?
The simple answer is the earlier you begin to invest in your child’s educational future, the better. Full-time students shelled out an average of $16,600 for post-secondary schooling in 2014-15. Do the math; that puts the cost of a four-year program above $66,000.
There are various financial incentives available from the Government of Canada to help your savings grow through a Registered Education Savings Plan (RESP).
For example, an annual contribution of up to $2,500 per child is eligible for a matching 20 per cent grant through the Canada Education Savings Grant.
For families with modest incomes, the federal government offers the Canada Learning Bond. It is available to children who were born after Dec. 31, 2003 and whose families receive the National Child Benefit Supplement.
A parent who qualifies will get $500 to put into to an RESP now and $100 each year until the child turns 15 (as long as you continue to receive the National Child Benefit Supplement). And you do not have to make any contributions to receive the grant. That’s up to $2,000 without having to contribute any of your own money.
So be smart. Start planning today for your child’s tomorrow. And make every week Education Savings Week.
