What Can A Pandemic Teach Us About Post-Secondary Planning?

Working with an established RESP provider can help you meet your child’s future education goals, even when the future is uncertain.

TThe year 2020 has presented us with a stark new reality, a steep learning curve and numerous obstacles to overcome. Many parents of school-age children are still balancing the challenges of home-schooling their kids with their own work. For countless other parents who have lost employment, the challenges are even greater. It’s been an exhausting, confusing and uncertain time, for everyone. We’re learning that no matter how well things are going for us or how prepared we think we are, unforeseen events can change even the best laid plans. So, as we adjust to a new school year, it’s a great time to plan for our children’s future to ensure they get every advantage.

The future starts now

What does a global pandemic have to do with a Registered Education Savings Plan (RESP)? According to a Statistics Canada study from July 2020, “research has shown that 15-year-olds who had access to RESP funds were significantly more likely to subsequently attend a post-secondary institution, even after accounting for differences in parental income and education, as well as the child’s performance on a standardized reading test and overall high school marks. Despite this, only about half of families with children younger than 18 have opened an RESP account.”

Simply put, preparing for your child’s future means taking steps now to plan for their education. So no matter what that future looks like, you’ll have helped them meet it head on.

Choose a partner who offers flexibility

If the COVID-19 pandemic has shown us anything, it’s to expect the unexpected. The effects of the pandemic on job loss, income instability and other tragic events have thrown many people’s lives into uncertainty. That’s why it’s critical, when planning for long-term education goals, to choose an established RESP provider that works with you to help you meet your goals.

“We believe that education is critical to success in an individual’s life, career and family. We stand for the important principle of equality of every Canadian being able to access education and have kept that commitment for over 59 years,” says Sherry MacDonald, president and CEO, CST Foundation. “I’m proud of the work we do every day to make sure that equality for Canadians happens and that we can improve the lives of many individuals.”

Longevity and a proven track record matter

When investing in your children’s future, choose a financial partner that has longevity, to ensure they’ll be there for you when you need them. From its beginnings in 1960, the Canadian Scholarship Trust Foundation (CST) has been a pioneer in the evolution of RESPs in Canada, encouraging governments to provide tax incentives and grants on behalf of Canadian families. Through its subsidiaries, CST currently has $5.2 billion in plan assets managed by top institutional money managers in Canada.

With a mandate to protect the principal of their customers while delivering a positive return on investment, CST has helped more than half a million Canadian students achieve their post-secondary dream through RESPs. The CST™ Advantage Plan available through CST Consultants Inc. offers easy ways to save, the flexibility to contribute within ones budget and even enables parents to skip a contribution or a few, to help them stay on track with saving for their child’s post-secondary education. CST provides flexibility in the contribution schedule because they understand that life happens.

Because our children deserve every advantage

An RESP is a dedicated savings plan that helps you save for your child’s education after high school. It provides parents with support to navigate their savings and apply for government grants for which they are eligible.

These government grants include the Canada Education Savings Grant (CESG), which provides up to $7,200 per child over the lifetime of an RESP by matching 20 per cent of the contributions to a maximum of $500 per year. Some families can also benefit from additional grants such as the Canada Learning Bond, which provides support for lower income families. Additionally, matching grant programs from some provincial governments can add 10 per cent or more to the savings in an RESP.

By taking the lessons from our current situation as a springboard for long-term planning for our children’s education, we can help to ensure they get the advantages they deserve. A CST RESP offers a viable way to ensure we can afford the future our children aspire to, even when the future is uncertain.

“preparing for your child’s future means taking steps now to plan for their education”