A lot of folks are brushing up on their knowledge of the RESP (Registered Education Savings Plan) these days. We’re certainly getting a lot of questions from reporters about it. Do check out our Co-Founder and CEO Tea Nicola’s interview on Roundhouse Radio, her chat with CBC starting at the 36-minute mark and her tips for Global News (It’s been a busy week!)
Why the sudden interest? Of course, a back-to-school story is always top of mind as the kids go back to school. But it’s more than that. Canadians are increasingly concerned about the cost of education. A post secondary education cost rise of 40 percent over a decade is concentrating minds wonderfully. Canadian families are increasingly struggling to keep up.
An RESP can help – but it helps to know the tricks to maximize your return on investment. Many families don’t. But ironically, the vast majority of people who do use an RESPs come from high-income families. They may not even need the incentive of a government grant!
For instance, it’s good to know about the magic number of $208.33 per child. That’s what parents can put away each month into an RESP to take maximum advantage of the Canada Education Savings grant. But if you can front-load an RESP right at the start with a big lump sum, that could be the best way to go. That could be the case even without getting the grant!
Check out the links to our media coverage above. Still have more questions about RESPs after that? Feel free to leave a comment, or chat with your WealthBar financial adviser!