Why Registered Education Savings Plan Can Help Parents Save For Their Children’s Education

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It is the wish of almost every parent to see their children having access to the post-secondary education. However, the dream may never come true especially when there are no plans that have been put in place to aid the financing of the education. The situation when left to be solved at the last minute may get out of hand mainly due to the high cost of tuitions, books and the cost of living which may prove to be a financial stress to the parent. Proper strategies ought to be put in place by the parents to ensure that the learners have an enabling environment as it will have an impact on the academic results of the learner. The situation becomes more complicated if the learner will have to study at a college or university that is out of the state and will be pursuing long registered education savings plan courses which may take four years or longer.

The only aid that the students get is through the loans that are awarded by either the government or the commercial banks. The loans, however, will place a massive debt on the student who is also jobless when graduating. It is vital that a parent starts saving the earliest possible for the young child’s future education from when the students are young and attending the lower grades.

 Researchers have proven that most parents will only discuss the financial requirements for tertiary education with their teens when they are almost through or around the tenth grade. It is at this level the parents start viewing their children as potential university students, but of course, it is too late for one to start saving for the child’s university education. But it is advisable that parents learn the areas of interest of their children while the children are at the tender age. Keeping tabs on the child’s interest acts as a guide to the amount that one should save to help achieve the course. Some courses will take a short period while others may take up to eight years to completion which will mean a parent will need to save more funds. Know more about education at http://www.ehow.com/education/.

One should look to take advantage of programs such as Registered Education Savings Plan (RESP) where they can save for the child’s education. Money saved through global resp allow for tax-free withdraw while the government also helps in funding the tertiary education of the child. Parents ought to secure the university education for their children and RESP goes a long way in helping them achieve it.

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