Now that school is almost in full swing for everyone, thoughts turn to education… or more specifically, saving money for education. In an Ipsos poll from 2017, it was found that 32% of parents had not started saving for their children’s education, and in retrospect, 68% of parents say they would go back and do something to save more.
Education really is one of the best investments you can make for your child’s future, and in Canada, with the government matching 20% of your RESP contribution, the return is even better. However, with things costing so much, especially for new parents, how can you find the funds to start an RESP?
A great way to do this is to set up an RESP when you start receiving your child tax credit. This is a new benefit for first-time parents and a benefit that increases when you have additional children. As soon as you start receiving this (or get an increase) take the opportunity to open an RESP with an automatic monthly contribution. This way, you don’t have to think about moving money anywhere, and if you start right when you have a new benefit, or an increased benefit, it’s money you likely won’t even miss.
Investing in your child right from the beginning is the best way to help ensure they get the best opportunities for their futures. After all, as parents isn’t that one of our hopes? To give our children a better start than we may have had? Do you have any money saving tips that have worked for you? We’d love to hear from you!