Top 5 tips to get more money out of your RESP
Post-secondary tuition just keeps going up. Canadian universities and colleges have been hitting youngsters and their parents with tuition hikes every year, for the last 28 years! And it rose 40 percent in just 10 years!
Your kids can’t pay for their schooling by working a summer job. They need your help. Here are the top 5 things you need to know to get more from your RESP:
Get more from your RESP with government grants
Enjoy early admission to Fatter Wallet University by remembering these smart tips:
1. The magic number of $208.33
Contribute this amount each month (per child) into an RESP to take maximum advantage of the Canada Education Savings Grant (CESG)!
2. Front load compounding
A big lump sum when your child is born can give you the best return, even without any grants!
3. Location, location, location
Depending on where you live, your province could give you extra education grant money!
4. The 35-year rule
Your kid wants to get work experience or travel instead of heading to university right after high-school. No problem! You can keep an RESP open for 35 years.
5. Your money is your money
Even if your child doesn’t go to post-secondary school, you can withdraw contributions tax-free (minus the grants) with gains rolled into your RRSP.
Start saving more for your child’s education
Get a new RESP (or transfer in or top up an existing one) and save up to 60 percent on fees.