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This time, we’re tackling the big money spenders for school– post secondary and their fees! If it’s not the little ones that make your head rattle, then it must be the young adults that have your bank dropping in numbers. The best way for you to save some money and budget well is to be aware of the different options you have. Watch the video to get all the information from Christine on CBC News!
Take advantage of the Registered Education Savings Plan (RESP) if it’s available to you according to your income and other guidelines! Heres why:
The government will match a portion of the money you’re putting in, some of them up to 20% of your contributions with up to $7,200 for the lifetime of the plan — that could pay for a little over two semesters depending on a program!
Depending on your income, modest income Canadians there can be an additional $2000 for the lifetime of the plan if your income is under certain guidelines.
There are no limits annually, it’s $50,000 over the lifetime of the plan. But there is up to $5000 in a specific year will maximize the grants from the government.
If your kids decide not to attend post secondary schooling, there are still options for you!
There are different ways to utilize the money such as withdrawing the money (only if the plan is in existence for 10 years, designated individuals have to be over 21, and of Canadian residence), paying taxes for the income earned as the grant will go back to the government, designate another individual (other family member), donate it to post secondary institution, or transfer to RRSP with no tax implications.
On another note, there are some that don’t qualify for the RESP to be mindful of:
High school upgrading
Less than 13 weeks in duration
Best wishes to all students going back to post secondary and budgeting students/parents!