How Much Will You Need to Save?
You can maximize your child’s education savings grants by contributing $2,500 per year, which is $208 per month. While saving the maximum amount is a definite benefit, it’s important to balance what you want to achieve with what you can afford. Set yourself up for success — by setting a realistic goal, one you know that you can attain.
Here are some things to consider when establishing your goal:
- Is your child planning to take a four-year program?
- Will your child live with you during school or require residence?
- Will your child have a part-time job while attending school?
- How old is your child? How many years before university or college?
Start Early, Save Often
It’s a long road from nursery to post-secondary school. The sooner you start, the more time you’ll have to save and the more you’ll benefit from compound growth. Starting early also means you have a greater chance of maximizing grants.
Establishing a regular saving schedule is a key to success. With our RESPs, you can choose a payment schedule that best matches your cash flow — bi-weekly, monthly, annually, etc. — and make changes if your circumstances change.
Reaching Your Goal Faster
Just got a bonus at work or maybe a refund on your income tax? Consider putting it into your RESP. Even the smallest contributions will add up over time. And remember, once you open your plan, anyone can add to it, up to the maximum contribution of $50,000 per child. Encourage friends and family to add to your child’s education savings on special occasions like birthdays.