Parents are leaving money on the table when it comes to saving for their child’s future education costs and that’s a bad financial move!
In Canada, if your child is under the age of sixteen, they qualify for FREE government money through a Registered Education Savings Plan (RESP). An RESP allows for tax-deferred investment growth and is a fantastic tool that allows a parent, or legal guardian, to save money for a child’s post-secondary education.
The Canadian government encourages saving for your child’s education by giving you free money through Federal and Provincial grants. The Canada Educations Savings Grant is certainly the most powerful, totalling $7,200 over your child’s lifetime, but many smaller provincial grants, and grants for families with lower incomes, will help boost your savings too.
What’s critical to note is that ALL of these grants have restrictions and deadlines. You, and your RESP specialist, will need to pay close attention to these windows of opportunity so you don’t miss out.
Knowledge First Financial has provided our team with a great summary of RESP grants for parents with their associated restrictions and deadlines.