Saving for school: Time to think about post-secondary education
If you are parents of a young child, take some advice from us (ahem) more experienced parents with older children. Time flies. Yes, it is a cliché — but in this case it is absolutely true. One minute they are boarding the school bus for the first time, the next they’re lining up for graduation.
If you’ve not started saving for your child’s post-secondary education, then there is no time like the present to get going!
Every little bit counts
When you think about the costs of tuition for college or university, it can be a little daunting. The goal here is to help your child either reduce or remove their need to take on student debt.
Starting today, even if it’s only a few dollars here and there will go a long way- if you build a savings habit.
I don’t have the money
Oh yes you do. When your focus is paying down debt and balancing your own household budget, you may feel like you don’t have any extra cash to direct towards savings. But you do.
For instance, if you commit to saving $100 a month, that’s $25 a week. How many takeout coffees and lunches out do you do in a week? Even if you cut back a little bit, you’ll find you’ve got the cash to cover it.
Recently, the government launched their Enhanced Universal Child Care Credit. Perhaps you weren’t even expecting this monthly payment. What are your plans for it? Open up a separate savings account, and let the funds accumulate there.
What the heck’s an RESP?
You may know what an RRSP is, but do you know about RESPs? Essentially, it is a tax-sheltered investment, where you can contribute money to save for your child’s education. There are limitations and conditions, but the government will also supplement your savings with a grant, up to $500 per $2500 contribution a year.