Have you started an RESP for your children?

Saving for your children’s education is important and you want to start early to get the most out of your money. I’m not very good with finances so I always look to my father to give me good investment advice. Starting an RESP was one of the first things we did when we had our first child.

Saving for a child’s education is easier if you start early and contribute regularly. Adding $25 a week to your child’s Registered Education Savings Plan (RESP) can add up to about $50,000 in 18 years – that is a good return on your investment and will help pay off your children’s tuition!

Plus when you contribute, 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!

There are many options – and you have the flexibility to use the RESP for university, college, apprenticeship, non-credit courses etc. If your child creates a million-dollar invention at 18 and doesn’t use the funds (wouldn’t that be nice?!), you can use your contributions and earnings to fund your RRSP.

There are many ways to save for a child’s education – with gifts from relatives and friends or a weekly contribution that fits your budget. With an RESP-Matic, you can contribute to your RESP regularly and automatically. I find that with automatic payments, you don’t feel the pinch of funds being withdrawn from your bank account.

I know the last thing I’d want is for my child to graduate out of college or university with a huge debt. So if you’re thinking of opening an RESP for your kids’ education, start now. RBC offers some good information and helpful tips on saving for your child’s education to get you started.

TWITTER PARTY

RBC will be hosting a Twitter party on October 1 with the hashtag #RESPwithRBC and what’s more, participants can win one of 6 $100 gift cards!

CONTEST

RBC has a great contest to help get you started! for a chance to win 4 prizes of $500 (towards an RESP)!

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.