Personal Investor: A hard lesson on student debt is spelled RESP
The cost of post-secondary education can be expensive, especially with the costs constantly rising. If you start saving early for your child’s education, there is an investment plan that will help towards the cost, called a Registered Education Savings Plan (RESP). An RESP is an 18 year investment that matches parent’s contributions with grant money. Taxes are taken only at the time of withdrawal, and the fund can reach up to $50,000, which is a sizable amount of what will be needed for a student’s education.
“It might seem like a glimpse into a grim future for some parents, but there is a federal government program that can help relieve the financial burden of post-secondary school for those who start saving while their kids are still young.”