Not convinced that opening a Registered Education Savings Plan (RESP) for your child is worth it? The federal government can actually help your savings grow. Consider this scenario:
Imagine your family saves $2 a day per child, or approximately $700 a year, in an RESP. The federal government will add a minimum of $140 through the Canada Education Savings Grant on what you saved. In addition, depending on your family income, you can get an extra $50 or $100 per year. You can keep contributing to the RESP until your child is ready to use the money for his or her education after high school. Your child can get up to $7,200 in grant money from the government.
The federal government will keep adding the grant to your savings until your child is 17, so the more you save, the more you get. At $2 a day for 17 years—along with the federal grant (plus interest)—the savings grow to well over $14,000.
Imagine having that kind of cash to draw from for just a Toonie a day.
CanLearn.ca tells you how to open an RESP, how friends and family can contribute, and how you might qualify for other grants such as the $500 Canada Learning Bond for low-income families. You can also call toll-free 1-800-O-Canada (1-800-622-6232) or visit a Service Canada Centre for more information.