As parents, we have a responsibility towards our children. We have to make sure that they always have a roof over their head, clean clothes to wear, and food on their table. Apart from this, you are also responsible for preparing your child for the future. Children have no means of earning income, and even if they start working as teenagers, they will only earn minimum wage, and that will not be enough for their future plans. One thing you can do for your child is to send them to college, and college happens to be pretty expensive, so to prepare yourself and your child financially, you should opt for a Registered Education Saving Plan (RESP) and we are going to talk about why you should do this below. Knowledge First Financial is one such company that collaborates and helps people apply and grow their RESPs.
- RESPs do not require you to pay any tax from the money that you earn through your investments. So, being tax-free, you are able to save more money quickly.
- The federal government also happens to add money into your RESP through many state and provincial grants that are available. You can learn more about those grants and whether or not they are available in your area for more information.
- Other people can also add to your child’s individual RESP. So, you can get financial assistance from friends and family who might want to contribute to your child’s education plan.
- RESPs happen to last a long period of time. So, even if your child does not start college or post-secondary education immediately, and they decide to come back to it in 10 or 20 years, they can still avail their RESP to fund their education, so they do not have a timer on them.