If your child is starting Junior Kindergarten this week (or next), and you have not opened an RESP for them, can I ask why you haven’t? Make it a new back-to-school tradition. Make an RESP contribution on September 1st (as well as other times during the year).
Go to my RESP page, and read some of the stories about how simple it is to open this kind of account and how helpful it can be (and how much of a pain it can be to extract your money). Still, if you think your child has a chance of attending a post-secondary program, you need to start saving immediately.
Some provinces are talking about changing their “student loan” system so that more grants are given out. I suspect the business of post-secondary education will keep out-stripping inflation for a long time.
I must, however, warn you about many of the RESP savings systems offered by many of the banks. Especially those that only allow you to purchase the bank “value added” mutual funds. Find somewhere that does not have a lot of extra fees, where you can grow the money you get from the government because it is not going to be enough, to pay for a complete education. Interesting that one Insurance company that had a Giraffe as their mascot, seems to have gotten out of the RESP business. Don’t use a group RESP either, very bad idea!
After all it is Free Money.
Back To School
A few other quick views on back-to-school and RESPs
- RESP: Back to School Reminders for September.
- So that is what $50,000 looks like… It is important to know what is the final goal for an RESP.
- Back to School (Monetary Nightmare) the start of September can be expensive.
- Back To School and RESP Time is the time to think about this. When else if not the start of school?
- University, Who Pays ? It isn’t written in stone that you must pay for your kids’ education.
- Kids Allowances (redux) is this concept dead? Are allowances passe?
- Money Hemorrhage in August? (aka the Scream). September can be a very expensive month.