Whether your child dreams of being a doctor, scientist,
architect or the CEO of a successful company, you
want to help your child achieve that dream. And you
also want to make sure nothing stands in the way,
including finances.
Funding your child’s education is one of the
most valuable gifts you can give. The benefits of
a college or university education will last a lifetime.
Unfortunately, it’s also one of the most expensive.
The cost of tuition and other expenses related to
post-secondary studies (such as books, supplies and
accommodations) continues to rise. Although costs
may vary by program, school and province, the cost
is estimated to reach over $110,000* for an average
four-year Bachelor of Arts degree by the year 2027.
If you’re overwhelmed by this figure, you’re
not alone. Saving early, careful planning and with
help from your Investment Advisors, this future cost
can become manageable.
An RESP allows the growth income earned on contributions
to remain tax deferred until your child enters
a post-secondary program (within 35 years) and
the money is withdrawn. In addition, your child
can be eligible for government grants up to $9,200. |
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Taxes are paid by the student when money is withdrawn
to pay for education costs. Since most students
have little or no income, the student pays little
or no income tax. RESPs can fund most full-time
or part-time trade, college or university as long
as government requirements are met.
“Education Cost Calculator”, CanLearn
website (www.canlearn.ca), Canadian Student Loans
Program Directorate, Human Resources and Skills
Development. (calculation projects the average
cost for an undergraduate student attending the
University of Trent and assumes 3.0% annual inflation per year from 2009).
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