Strate­gies on how to save for your chil­dren’s ed­u­ca­tion

South Shore Breaker - - Games - KEVIN DOREY FI­NAN­CIAL FO­CUS kevin.dorey@ed­ward­jones.com

One im­por­tant fi­nan­cial goal you might have is sav­ing for your chil­dren’s post-sec­ondary ed­u­ca­tion. But this is likely not your only fi­nan­cial goal and it is of­ten dif­fi­cult to pri­or­i­tize and con­sider your com­plete fi­nan­cial pic­ture. Dis­cussing with your fi­nan­cial ad­viser all of your fi­nan­cial goals will help you work to­gether to de­velop a strat­egy that fac­tors in all of your pri­or­i­ties and sets you on a course that will best help you achieve them.

Here are strate­gies to con­sider as you plan:

Setup a Regis­tered Ed­u­ca­tion Sav­ings Plan (RESP) — An RESP is a tax-de­ferred sav­ings ac­count de­signed to help you save for post-sec­ondary ed­u­ca­tion. The gov­ern­ment will match 20 per cent on ev­ery dol­lar of the first $2,500 you save in your child’s RESP each year to a max­i­mum of $500 per year for each child up to a $7,200 life­time max­i­mum.

Con­sider set­ting up an au­to­matic pay­ment plan — You can set up an au­to­matic pay­ment plan which sys­tem­at­i­cally with­draws funds from an ac­count to make con­tri­bu­tions to your RESP.

Cre­ate a bud­get and stick to it — Work with your fi­nan­cial ad­viser to de­ter­mine a monthly con­tri­bu­tion amount you can af­ford and in­crease it when you can.

In­volve your fam­ily — For spe­cial oc­ca­sions like birth­days and hol­i­days, you could en­cour­age grand­par­ents or other fam­ily mem­bers to open an RESP in your child’s name or con­trib­ute to one that is al­ready set up.

Ex­plore fi­nan­cial as­sis­tance op­tions — A good place to start is the Gov­ern­ment of Canada’s Re­source page at www.canada.ca/en/ser­vices/ fi­nance/ed­u­ca­tion­fund­ing.html where you can ex­plore stu­dent loans, grants and scholarship op­tions that might be avail­able to you

By fol­low­ing some of these sav­ing strate­gies when your chil­dren are young, the in­vest­ments will have more time to grow and you will be in a bet­ter po­si­tion to sup­port your chil­dren’s post­sec­ondary ed­u­ca­tion when the time comes.

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There are op­tions and re­sources that can help make sav­ing for your child’s ed­u­ca­tion eas­ier.

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