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.