Education Savings Guide

Benefits of Opening a Registered Education Savings Plan Account

   

One of the difficulties parents face is where they would get the resources to finance further education of their children after high school. A college education is expensive, but they would try everything to give their kids chance to get into college or if this is not possible, get into trade school or apprentice program.  Parents want to their children to be prepared for the future and giving them a chance at getting good education is important.

 

However hard it is for them, most parents would set aside a portion of their income for the continuing studies of their children after high school.  Many governments as part of their social services have educational programs for poor and middle income families.  For example, the Canadian government has the Canada Education Savings Grant (CESG), which is designed to help children from low and middle income families pursue further studies after high school at a college, university, trade school, apprentice training or CEGEP. The latter is a pre-university college funded by Qu?bec's education system.

 

 To get entitled to assistance under the canada education savings grant, all parents or guardians have to do is open a Registered Education Savings Plan (RESP) for their child.  The basic CESG adds 20 cents for every dollar deposited to the account. The maximum CESG contribution on an annual deposit is $500. For parents who are not able to contribute to the fund for any given year, they can always make up for it in the succeeding years.  The money is available in full when the child reaches the age of 17. However, to get the contribution from the government the child must have attended high school.  If not the money reverts back to the Canadian government.

 

There are many finance companies providing RESP services. It is important for parents or guardians to open the RESP with an institution known for its integrity and sound management practices.  They will take any unforeseen risk when they open the account with a company like the global resp corporation, currently one of the leading resp companies.  Its web site provides all information parents need to know about the resp including government grants.  Read more about education at http://www.ehow.com/ehow-mom/blog/9-back-to-school-traditions-to-document-educational-milestones/.

 

There  is  no reason  why children  of poor families  or  even those staying with guardians  should  not  get the education they need to  prepare them for the  future. Resps are designed to ensure less fortunate children receive further education or training after high school. Visit us for the canada education savings grant

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