Why not open a Registered Education Savings Plan?
RESP Ingredients:
A child
One dollar a day
Federal government education savings incentives
Instructions:
For every child in a household, take a dollar a day and invest it into an RESP - Registered Education Savings Plan. Continue to do this every year between now and the time a child goes to trade school, college or university. Do NOT touch the money; let it sit in the RESP and it will grow. It is a matter of compounding. The more money that is added and the longer it sits there, the larger the amount will become. If a family can only afford $.50 a day, simply halve the recipe. Every little bit helps and it will all still accumulate.
Icing on the RESP:
For every dollar that is put into a child's RESP, the government will add between 20 and 40 cents in Canada Education Savings Grant money, depending on the family's income and the amount that is contributed annually. If a family has a limited income, and is receiving the National Child Benefit Supplement for their eligible child born after Dec. 31, 2003 they could also receive $500 in the form of the Canada Learning Bond as well as additional money in years to come.
Substitutions:
Although there are many other savings vehicles out there (Tax Free Savings Accounts or the old-fashioned cookie jar for example), it is worth remembering that an RESP is the only plan where the government offers money to help families save—from 20 to 40 per cent—based on what you contribute and your net family income.
Serving instructions:
Serve with encouragement and support for a lifetime full of possibilities. Further instructions can be found online at www.CanLearn.ca.
