Since my boys first month of life, my parents and I have contributed to their Registered Education Savings Plan (RESPs). Not only is it a truly fantastic way to save for their education, it is a great way to access government grants that will help you to save faster. If my parents taught me anything, “compound interest is your friend when saving.” Yes indeed it is.
This year, why not invest your tax refund into your child(ren)’s RESP?
Government Grants for Registered Education Savings Plans
Benefits of extra contributions:
- With an RESP, you may be able to receive government grants, such as the basic and additional Canada Education Savings Grant (CESG), Canada Learning Bond (CLB), and provincial education savings incentives (Alberta, Quebec, Saskatchewan and British Columbia).
- Basic CESG: The Canadian Government tops up your annual RESP contributions by 20%, up to $500 per year and up to a lifetime maximum of $7,200 per eligible child.
- Additional CESG: Qualifying families may receive up to 40% on the first $500 of annual RESP contributions. Both the basic and additional CESG have a combined total lifetime maximum of $7,200 per eligible child.
- Canada Learning Bond (CLB): For qualifying families who open an RESP, an initial CLB of $500 is available to be deposited into the child’s RESP. Subsequent installments of $100 will be available for children for each year of eligibility until age 15. The Primary Caregiver’s income must be eligible to receive the National Child Benefit Supplement, which is included in the Canada Child Tax Benefit, and is generally paid to families with a low to moderate income.
What it really means to your family:
With the rising costs of post-secondary education saving now with an RESP is critical to ensure your child’s future financial success. As someone whose parents were unable to contribute fully to my education I know that I am still haunted by my student loans. My wish for my children is that they never have to experience what I have gone through paying for my education for many years after I’ve completed.
This commercial for Heritage Education Funds Inc. beautifully depicts the journey of one student from her graduation day to the beginning of her educational savings. I love that this can be my boys’. Starting now, saving for years, and deferring any taxes on investment earnings. Plus, with a lifetime contribution limit of $50,000 every dollar truly does make a difference.
What you need to know about Heritage Education Funds Inc:
- A leading Canadian provider of fixed-income RESPs with almost 50 years in experience helping Canadian families (since 1965) invest in their children’s future.
- About over 1,200 Heritage representatives across Canada
- Heritage representatives speak their client languages – including; English, French, Cantonese, Mandarin, Punjabi, Hindi and many more languages.
Heritage Education Funds’ Group plan is a pooled fund where your contributions are combined with those of other subscribers, offering a wider range of investment opportunities as well as benefitting from compound interest. Heritage manages over $2.28 billion in assets under management and has assisted over 440,000 Canadian families, as of December 31, 2013.
Enter to win $2500 towards an RESP
Heritage Education Funds Inc. has a fantastic giveaway where you can win one of eight $2,500 contributions towards an RESP in the Annual RESP draw. What parent wouldn’t want to get a head start on saving for their child’s education? Enter today. Contest closes on December 31, 2014.
Disclosure: This is a Sponsored Post. All opinions are 100% my own.
Susan says
This is very informational, thanks for sharing. I would love to win $2500 towards an RESP!
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Francine @ Teresa's Family Cleaning says
This is great info to have. Going to bookmark this and check it out. Thanks!
Shauna says
Thank you so much. I have three little ones and really should start thinking about their future… this sounds awesome. Thanks so much
Ellen Christian says
I had no idea. Saving for your childrens’ future is so important!
Ellen Christian recently posted..15 Paleo Recipes for Mother’s Day & Paleo Broccoli Quiche Recipe
brett says
it really is. i’m scared of how much things will cost when my 4 year old is ready to head to college.
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Pam says
Student loans are very scary to have to take out. This looks like a great way to avoid them.
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Emily says
thank you, this is a great program!
debra p says
Saving is always something you’re so glad you did! I didn’t know about this.
Keikilani says
This is pretty neat. We have 3 boys so far. Need to get started saving while they are young.
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Tammy Litke (@threedifferent) says
When our daughter was little and we lived in Canada we never opened an RESP for her, I’m not sure if the rules have changed since then, but it didn’t seem like a good move since we didn’t know her future education plans at the time and it was only for educational use (although you could sign it over to another student to use if I understood it properly at the time). Fortunately she ended up getting a full 4 year scholarship for university so us not having any savings for university is a crises averted ;)
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Tammi @ My Organized Chaos says
Great contest! We started saving when our girls were born and am happy that we are well on our way. If you are diligent, it adds up fast!
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Jenn says
I need to look into something like this. My daughter goes off to college in two years and we have only saved enough for probably her first year at college!
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Amy Desrosierss says
Thanks for the information. We are currently depositing money into each of three kid’s college funds, but are always looking for competitive options.
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Kathleen Garber says
This is something I haven’t done and there is no good reason why. Thanks for the reminder.
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Jenn says
UGH student loans are the worst! My husband has a ton of them that we are trying to pay off ASAP!
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Jennifer Soltys says
Oh man… I know quite a few people who are dealing with huge student loans. Great info!!
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Liz Mays says
I can see the weight it’s going to be on my son as he’s just now graduating college. I worry terribly about it. Anyone should try for this to help defray as many expenses as possible.
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Kristen @ My 3 Little Kittens says
I was not aware of this program. Thank you so much!
Amber Edwards says
We just finished college….yeah…for the 2nd time around. And it is so expensive! And student loans can really kill you financially. Preparing now for your kid’s education is so crucial.
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Toni says
This is something we could definitely use. With 3 kids it’s going to get expensive for us.
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LIsa says
I have heard about grants, but never checked them out. Awesome giveaway too!
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April says
Thanks do sharing. I need to do this!
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Dawn Lopez says
This sounds amazing and I’m totally loving the chance to win. I am embarrassed to say that I have never heard of this, so thank you for breaking it all down!
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Sandra says
Grandparents started these for our 5 kids and I am so grateful.
Mistee Dawn says
Wow. Never even heard of most of this! Thanks for the useful information.
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Sarah @ Must Have Mom says
This is a great plan! With multiple children, even thinking about paying for college makes me cringe!
Jessica Cassidy says
This is an amazing way to do to make sure that our kids will have a very bright future. My kids have their own savings account since they were babies. They also have their stocks that they do not know. It would help them to go to college someday :-)
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Heather says
This is great! I’m sure they have something similar here in the United States. I know I am still paying off my student loads, but the good thing, they will all be paid off this December. I still consider a secondary education one the most important things you can do for yourself.
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Stefani Tolson says
Thanks for sharing this information. I have four kids that I am hoping to send off to college one day.
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Kristin Wheeler (@MamaLuvsBooks) says
Great info for education funds. School is so expensive these days! It’s insane!
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