If you are currently contributing to an RESP to save for your child’s education you are taking the right steps to ensure that your child has the best future possible. Saving for their education is one of the best things that you can do for them. At times it can be a financial strain, but remaining dedicated shows that you know just how important it is.
Fortunately, there are ways to greatly increase the amount of money that accumulates in their account as long as you know what is available to you. The government of Canada has created grants that encourage parents to contribute to their child’s RESP by offering to match a percentage of your yearly contribution. The Canada Education Savings Grant will match 20% of the first $2000 contributed each year. That amounts to up to an additional $400 each year, which is rather significant.
You may also qualify for the Addition Canada Education Savings grant if you meet certain income guidelines. Depending on your family’s net income, the grant will contribute 10 or 20 percent of the first $500 contributed each year, in addition to the standard grant. To determine what grants you qualify for you should visit Heritage RESP. Regardless of if you think you fall under the income requirements, there certainly is no harm in trying.
These grants are for children with RESP accounts that are Canadian citizens. The grants will continue until the year that the child reaches 17 years of age. From the years of 15-17 there are more specific requirements that you will certainly want to investigate when the time comes. You should also be able to receive assistance and more information from your financial planner, bank or RESP service provider.
These grants are intended to give Canadian children the best start in life possible. Education is the biggest determining factor in what kind of career they will be able to achieve as well as their future income potential. Fortunately, the Canadian government understands this and takes investing in the future very seriously.
If you do not have an RESP set up for your child the time to do so is now. Even if you feel that you do not have much to contribute, every dollar makes a difference. Use the information above to ensure that you get the most of every contribution that you are able to make.