Financial Planning for College/University

Tuition in Canada is outrageous and increasing every year, averaging just under $7,000 for undergrad students in 2018/2019, according to Stats Canada. It’s an ongoing trend that means parents need to start saving when their kids are young, taking advantage of every opportunity to put aside extra funds. This is traditionally done through an RESP, (Registered Education Savings Plan).

Speaking to a professional financial advisor will help you figure out the best way to save for your kids’ college or university tuition.

The benefits of an RESP are primarily that anything you deposit into the plan will grow tax-deferred until it’s withdrawn. When it is withdrawn it’s taxed in the hands of the beneficiary, and in most cases, there’s almost no tax paid at all. The other primary benefit is that the government will provide a grant up to 20% to a maximum of $500 per year. This means that for every $2500 you deposit to the account, the government will provide an additional $500.

There are other low-income grants available as well. The BC Government also offers the BCTESG which is a $1200 RESP grant payable to an RESP for a B.C resident between the ages of 6 & 9.

Like you, we want to see our kids get the best possible start in life. Whether they want to be a teacher, engineer, astronaut, or something in between, the reality is that education doesn’t come cheap. We’re not just financial advisors, we’re parents too, and we understand.