The crisp fall air is settling in and back to school is in full force! With loads of College and University students in their first week of school, tuition is on the brain of millions. With my daughter in her first year of education we’re looking to avoid those awful thoughts in the future. Saving for a child’s education is easier if you start early and contribute regularly! Today I thought I’d share our ideas!
5 ideas to save for your child’s education:
- Ask for money for Christmas and/or Birthdays. Let grandparents and other family members know early on that you’ve set up a savings plan. Rather than another toy ask for a contribution.
- Keep a pocket money piggy bank in the laundry room or kitchen. Empty your pockets at the end of the day. Don’t open it until you’re ready to go to the bank so you aren’t temped to use the funds on something else. One year hubby and I had saved up $600!
- Use your tax return or baby bonus cheques as a monthly or annual contribution.
- Research scholarships and bursaries early. This is of course for older students, but checking out what is available in grade 11 or early grade 12 will give them the upper hand on meeting the requirements to make applying much easier.
- Automatic withdrawal to a RESP with RBC. This is one of the best things hubby and I ever did. We sat down with our RBC lady (Denise we think you’re great!) with her valuable advice we decided on a bi-weekly amount that was suitable for our income. That’s it; we don’t have to think about it again! We meet with her once a year to make a lump sum contribution (from the kids money gifts, and piggy bank loot). At this meeting we discuss how we would like the RESP money to grow, and the risk we’re willing to take.
Tidbits about RESP contributions, you might not know-
- You receive free money from the government! The Canada Education Savings Grant will match up to 20% on the first $2,500 contributed annually. Depending on your income that could mean up to $500 a year, up to a lifetime maximum of $7,200!
- Your child has the flexibility to use the RESP for university, college, apprenticeship, non-credit courses etc., and if your child doesn’t use the funds, you can use your contributions and earnings to fund your RRSP!
For more great tips on saving for your child’s education visit the Royal Bank Registered Education Savings Plan page or visit a branch near you!
“Disclosure: I am part of the RBC RESP blogger program with Mom Central Canada and I receive special perks as part of my affiliation with this group. The opinions on this blog are my own.”