22 Lessons Learned: Education

The Benefits to Registered Education Savings Plans

Because many, many parents care for their children’s future, they are starting the RESP or more commonly know as the registered education savings plan. So if you want to ensure a good education for your children when they grow up, then you should also do the education savings plan. Out of all the benefits that a registered education saving plan can provide for your child’s future; here are 3 of the most common and most important ways it can be a benefit not only for your child but for you as well.

The biggest benefit to registered education savings plan is of course you will will be able to save your money for your child’s education in the future. This is the main reason these registered education savings plans are there – so you can save for your kids future studies. A parent will no longer have to be anxious about their child’s future when the time come to pay all the school fees because they have their savings. Now you do not have to worry about what money you should use because you already saved enough money for your child education when it comes time to pay the fees.

Another thing that is super beneficial about registered education savings plan is that it is easy to start early because you can put small amounts of money each time. The nice thing about registered education plans is that there is no specific amount to put in, you can decide if you want to give a few dollars to a hundred dollars, it is really up to you. Most people will feel really nervous if there is a minimum payment every month especially if they do not have the funds; this is why registered education savings plans really encourages people and makes them feel safer. So the budget for what you put in your registered education savings plan can really vary depending on what you can pay for.

Now that you have your savings in the bank, the next thing to do is to pay taxes? Nope, you do not have to pay any taxes once your money is in the bank; this is the last benefit we will look at today. Of course, you are not tax free, but you will only have to pay these taxes when you get the money out of the bank. These taxes are usually really small because you are dealing with the education of children. So you no longer need to always worry about the high taxes that you will need to give when putting your money in the bank for registered education savings plan because the RESP does not require any tax.

There are many other benefits that registered education savings plan can provide for you and your child. With registered education saving plans your child’s educational future will really be very stable.

Source: http://www.financeideas4u.com/2016/09/what-you-can-do-to-prepare-for-your.html#.V-T786IrInU

  • Partner links