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Thursday, September 18, 2014

Importance of Saving Early for Your Children’s Education #RESPwithRBC

Some time after my son, Brandon, was born, I had already thought about opening and RESP  (Registered Education Savings Plan) account for him. I started later in the 2nd year because the first year was very stressful and was a busy year looking after the little one. My sister works as a financial advisor so I was lucky to have her come over to do the paperwork as well as give me advice and tips about setting up Brandon's RESP. It was very easy and convenient.

What motivated me to start opening and RESP account for my child is when I thought about his future in his education and getting good education is important. Post-secondary tuition can be very costly. I know from my experience. My mom used to work part-time and my dad was retiring. And at the same time, I was looking for part-time work to pay part of my tuition (mom helped out mostly). It wasn't easy.  I wanted to attend art school, but tuition was so much more than the regular colleges. I just couldn't afford it. I wish my parents had and RESP for me back then.

Saving for a child's education is easier if you start early and contribute regularly ($25 a week can add up to $50,911** in 18 years). You can receive free money from the government! The Canada Education Savings Grant will match up to 20% on the first $2,500 contributed annually. That could mean up to an additional $500 a year in your RESP, up to a lifetime maximum of $7,200!

With advice from RBC Royal Bank, it's easy to start. No need to be overwhelmed. You have the flexibility to use the RESP for university, college, apprenticeship, non-credit courses etc., and if your child doesn't use the funds, you can use your contributions and earnings to fund your RRSP! There are many ways to save for a child's education: birthday or Christmas gifts from relatives and friends or a weekly contribution that fits your budget, maybe $25/week with an RESP-Matic. I think it's awesome that family members can donate money to the kids.

Did you graduate with student debt? By utilizing an RESP you can help your kids graduate debt-free! You can find more great tips on saving for your child’s education here: and

Why invest in a child’s education? Of all the factors that could influence your child’s future employment, earning power and career satisfaction, a post-secondary education is probably the most significant.


RBC Royal Bank is currently running a contest called "Grow an RESP with RBC" through their Facebook Page. Canadians can win money towards their Registered Education Savings Plan and help their child achieve their dreams. Enter for a chance to win 1 of 4 $500. Contest ends October 4, 2014.

Disclosure: I am part of the RBC RESP blogger program with Mom Central Canada and I receive special perks as part of my affiliation with this group. The opinions on this blog are my own.

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