There’s no denying the importance of education. Anyone looking for a stable future in the job market needs to be more skilled and educated than ever before. This is why a college education at university is so important and while it can be a challenge to pay for these courses and the degree that comes with them, there are options available. One of the best for Canadian citizens is the Canadian Registered Education Savings Plan, also commonly referred to as a RESP and help you to manage by an agency.
So what are the benefits of these plans?
One is that they are safe. Your account will continue to earn interest as long as it is open, and the Canadian government will match up to $500 per child per year. If a RESP is started when a child is young, that can lead to a lot of extra funds added to an interest collecting account. You’re not going to lose half the money because of recession or because a stock market takes a downturn.
Another benefit is that these accounts are transferable. What does this mean? If your child decides not to go to college, the savings can be rolled into a RESP for another child of yours. This means those savings aren’t wasted, and someone in the family will get their education savings.
RESPs also grow their savings tax free, allowing them to emphasize growth in order to create the money needed to pay for tuition and other educational expenses. This is also another reason why a RESP is preferable to a normal savings account or investment.
Finally, a huge reason why the Canadian Registered Education Savings Plans (RESP) is such a popular choice is because it is extremely flexible. This plan doesn’t have to be used right away and in fact can be held for years before transferring or cashing out. This means a person can have an off year, travel, work, and even take several years to figure out what they want to do before using the RESP, during which time it just continues to keep growing via interest.
If that child never goes for higher education, the account can be transferred to another eligible child in the family, allowing a jump start on their savings. Finally, if no one ever goes to college while the government contributions would be returned from the account the base amount would be returned to the family.
That’s an educational plan you can count on, whatever your needs.