Sunday, May 3, 2015

An Easy Way to Contribute To Your Child’s RESP at Tax Time

I hope all of you have started your taxes for 2014! :) Since the time is approaching to finish filing tax returns, I wanted to mention how easily we can save for our children's future by contributing towards a Registered Education Savings Plan (or RESP) via our tax returns. As a parent, I think it helps if we think about our children's education starting from a young age, instead of waiting for the days when it gets closer for them to go to university or college. This savings will minimize future stresses, and help us be in a position where we can help our children with their schooling. 

Based on my own experience dealing with debt after graduating from University, I know how important it is to start saving early. I find it easy to contribute to an RESP when we receive our tax return, and know that we have done our part as parents to help our children fulfill their dreams.

I was thrilled to find out that the income on savings within an RESP is tax sheltered until our children are ready for post-secondary education. These earnings are taxed with little to no tax when our children withdraw the RESP savings for their post-secondary education. And, contributing to the RESP also gives us the opportunity to qualify for various government grants such as the Canada Education Savings Grant. I think we should all take some time to think about it, as this is important.  

Companies like Heritage Education Funds (one of Canada's leading providers of Group Registered Education Savings Plans) has helped  thousands of families save for their beneficiaries' post-secondary education, so it might be helpful to visit their site and get more information that will help you in this process.  They also have a draw until December 31, 2015 where you can win 1 of 8 contributions of $2500 towards a Heritage Education Funds RESP. Wouldn’t that be nice? :)

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16 comments:

  1. Definitely something to think about and start doing early since post-secondary education is so expensive. (Judy Cowan)

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  2. thanks for the info i really need to do this for my children

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  3. will have to start planning to do that for my daughters

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  4. thanks for the info and yes its good to start saving early

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  5. I agree that its important to start saving early as the cost to go to university has gone up alot.

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  6. We've been contributing since we had our first child 8 years ago. The partial matching from the government is free money we don't want to miss out on!

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  7. We've been contributing since the day we received her birth certificate. Every bit helps

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  8. This post has been so helpful,thanks

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  9. Yes you are so right its good to start saving early.

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  10. Thanks for the helpful reminder to save. I didn't do this myself for school, and need to get a headstart for my own family.

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  11. Wow, Thank you for sharing this Important post =) Time to get my butt in gear and start saving x

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  12. They've been doingbthis since 1965...says a lot!

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  13. Just had my first child so this has definitely been on my mind!

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  14. Good article. It's never too early ,or for that fact, too late to start saving.Cheryl Abdelnour cjabdelnour@hotmail.com

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Thank you for commenting :)

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