We all want what’s best for our children, and that always includes a quality education. Canada is lucky enough to enjoy one of the best educational systems in the world, with dedicated teachers and an ever-improving curriculum that helps keep students ahead of the curve. That being said, for as great as our educational system may be, universities can still be quite expensive. Thankfully, with a Registered Education Savings Plan, you can help save for your child’s university days and ensure that all of that education pays off in the end. So, just why is an heritage RESP so worth it?
1. They Can Increase with Time
The most important feature of any savings fund is their ability to accrue in value over time, and RESPs are no exception. Different provinces have different plans, so you’ll want to check the particulars in your home province. That being said, as a general rule, RESPs allow parents to put money into a plan and keep it there, increasing with government-subsidized interest over time until your child is of age to use it. This can be a great way to save a decent amount of money for university without having to save it all in one go. Saving a little here and there – and being matched by the government in your efforts – can go a long way.
2. Province Perks
As noted above, different provinces have different perks when it comes to how their respective Registered Education Savings Plan works. What flies in Alberta is likely to be different from the rules in Quebec. As such, you’ll want to take the time to learn what specific provincial perks you may be able to score when investing in your province’s RESPs.
3. Your Child Is Worth the Investment
The most important reason to invest in an heritage RESP is, of course, the fact that you want what’s best for your child. Being able to provide a better world for our children is one of the great uniting causes of mankind, and it’s something that makes RESPs all the more inspiring. They are a great example of how, properly managed, governments can help their citizens in a very real and tangible way. You don’t want to see your child’s dreams or abilities limited by financial constraints, and programmes such as these help in that regard. University can be expensive, but with the help of an RESP, it can be a lot more affordable.
4. Tax Exemptions
Last but not least, heritage RESPs fall into a special category of investments which are typically exempt from taxation. This means that the money you put into an RESP is “safe,” and can thus only grow with time. It is thus not only one of the safest bets you can make on your child’s future, but one of the safest investments overall.
Your child deserves the best, and a great education can help take them places that we can only imagine. Invest in an RESP, and see what an enormous difference a little bit today can make in your child’s future tomorrow.