Top 10 Ways to Save for Post-Secondary Education There are a number of things that parents need to do in order to maximize the savings for their child’s future education needs. Take a look at these tips from the innovative Registered Education Savings Plan provider, giraffe & friends: • Understand who to talk to and what they’re talking about. Pick an RESP provider with a website full of information that’s easy to understand. • Skip the savings account. Your RESP grows tax-free until your child withdraws it at their own lower tax rate, so it grows faster than a regular savings account. • Get a Social Insurance Number (SIN) for your child. You can apply for an RESP without one, but your savings won’t start earning grants or interest until you provide it. • Do your research. Not all RESPs are created equal; return rates and fees will vary. Watch out for MER charges (management expense ratio) and other management fees. • Select a program that doesn’t gamble your savings. For example, giraffe & friends point out that their plan is worry-free and maintenance-free; your investment won’t be impacted by stock market dips or even a crash – and you don’t have to keep up with financial news or lift a finger to keep your money safe. • Don’t forget about other sources of financial support. An RESP can be combined with scholarships or student loans to pay for post-secondary education. • Maximize your grants. Federal government grants have a cap of $500/year and a total contribution cap of $7,200 over the life of the RESP. Your provider should guarantee that you won’t miss out on any available grant money. • Set up automatic payments. This is convenient and reliable and it means you’ll never miss a contribution. • Don’t think that it’s just for university or college. An RESP can be applied to most post-secondary education that results in a degree, diploma or occupational skill, even international schools. • Use it for anything your child needs when they’re at school. As long as your child is enrolled in some form of approved post-secondary education, from university to a trade school, their RESP can be applied to anything including tuition, food, apprenticeship tools or books. More information is available online at giraffeandfriends.com. www.newscanada.com
