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: http://www.rbcroyalbank.com/resp/ and http://www.rbc.com/education
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.