Your child's education is important. From kindergarten through graduate school, you want to make sure your child has the best educational resources available to meet their unique needs and develop their individual talents. And, if you're like most parents, sending your child to college is high on your list of financial priorities.
Next to buying a home, your child's education will probably be the greatest expense you'll face during your lifetime. From private grade schools to top universities, educational costs continue to increase. However, if you plan ahead you can manage the costs. It's never too early to establish an education savings program. Additionally, you should evaluate how you can protect your child's educational opportunities should anything happen to you.
What is a RESP?
Nineteen things you need to know about an RESP's
While the best strategy varies with individual circumstance, Solutions Financial recommends the following:
- Apply for a SIN now.
- Establish an RESP as soon as possible.
- Decide on your investment strategy, given the child’s age and your risk attitudes.
- Remember that neither the RESP account has foreign content restrictions like an RRSP/RRIF; so spread your growth around the globe.
Watch your investment strategy mix as the child approaches withdrawal requirements.