Start Now – Saving for Your Child’s Education

Whether you’ve just welcomed your bundle of joy into the world or you’ve been raising them for years, it’s likely that you’ve given little thought to the high costs of college they’ll likely be facing down the line. With many students leaving higher education with more debt than they can handle, it pays to give thought to how you’ll be able to help your student financially in the future and start saving now.

Most loans are complicated and unnerving and none should be entered into lightly, whether you’re looking for financial aid or a quick loan through service providers like Wonga (visit the site here).  But by starting now, you can guarantee a happy and less stressful future for your child.

If you’ve decided to start saving for your child’s future education, the first step is to see how much you should be saving. While figuring tuition may be easy, figuring the cost of books and living expenses is a little trickier. Give it your best shot, and remember that even if you don’t end up saving for the entire cost of education, being able to pay off a large chunk of the debt your child will be taking on will help tremendously. Use websites like CanLearn.ca to create a savings plan that’s easy for you to handle on a monthly basis but will still get you to your goal.

The next step is to choose what type of savings you want to tie your money up in. You can choose a regular savings account with a moderate interest rate at your local bank for convenience, or if you’re looking to get the most for your money, look into a Registered Education Savings Plan or RESP. RESPs are useful not only because they allow tax-free contributions into a plan until you’re child is ready to use the funds for higher education; it also provides incentives like the Canada Education Savings Grant (where 20% will be added to the first $2500 contributed to the RESP) or the Canada Learning Bond (where $500 will be automatically added, plus $100 a year until the child reaches 15 years of age). These plans offer money on top of money, which you might as well be getting if it’s just sitting there.

Probably the most important step is being able to not touch that money. You’re putting that money aside for a reason and it’s useless if you just end up spending it on a family vacation. RESPs or trust savings can be helpful if you’re the type of person who has a hard time holding onto a savings. These options have penalties for withdrawals, usually equal to whatever interest was earned on the account plus a small fee. It’s difficult to see a large sum of money sitting untouchable for such a long period of time; but the peace of mind your child will feel when they enroll for college will be worth every penny.

Comments: 7

  1. Alethia July 30, 2013 at 9:37 am

    I’m comfortable with the reason why to become against Obama, but what exactly are your good reasons to be for him?

    I am just thinking about what everybody needs to say.

    Personally I am a liberal democrat. But i am about 50 % and half on obama

    appreciate your thinking 🙂

  2. Herman August 11, 2013 at 7:33 am

    Emanuel is a nice moderate guy, noted for pushing NAFTA and welfare reform within the Clinton administration.

    http://world wide web.politico.com/news/tales/1108/15314.html

  3. Hannah September 18, 2013 at 12:22 am

    The Ziggler’s happen to be married for six years. They’ve two children, Myra (5) and Brenden (3). The Ziggler’s have thought about getting more children but currently they wish to begin some personal projects.

    Brett Ziggler just finished his bachelor’s degree in accounting. He want to go back to school part-time to acquire a master’s degree in accounting to ensure that he is able to take the CPA certification exam. Meanwhile, he’s just begun employed by PricewaterhouseCoopers (PwC), like a transactions service representative making $40,000 each year. In a single month Brett will start benefiting from the firm’s 401K plan and expects to deposit 2% of his yearly earnings into this account.

    Aleysia Ziggler is really a wedding coordinator and presently works best for firm making $45,000 each year without benefits. Aleysia want to open her very own event planning business concentrating on wedding ceremonies and special events. Ideally Aleysia want to work at home but she worries the apartment the household continues to be leasing won’t give a stable enough office on her business. Aleysia and Brett have thought about buying a house however they don’t want a larger investment on their own housing costs every month. The pair already stays $1500 every month on rent and also the average home within their area is $280,000 and mortgage rates of interest remain 6.25%.

    Brett and Aleysia made the decision three years ago to begin saving for his or her children’s higher education and wedding ceremonies. The pair opened up a checking account which returns 2.3% interest. They’ve made the decision to create aside $40 monthly within the account. Including their opening deposit as well as their monthly contributions the account presently has $4000.

    Brett and Aleysia happen to be giving 3% of the earnings to non profit organizations within the last four years. The pair feels the donations are their method of supporting the city and worthy causes. The household also volunteers for any charitable organisation organization, 10 miles using their home, monthly to assistance with teaching their kids this value.

    Brett and Aleysia possess a small investment portfolio worth $4700 that they receive $30 yearly by means of returns. The pair received this portfolio like a wedding gift but hasn’t made any changes into it.

    Brett and Aleysia have lots of choices to create within the next couple of several weeks and they wish to get the best choices. They’ve requested your assist in supplying all of them with a tax and financial planning strategy.

    8.If Brett left his job revisit school and Aleysia stored her present position, wouldso would your advice towards the Zigglers change?

    9.If Aleysia’s earnings increased to two times its current rate, wouldso would the Ziggler’s taxes change? If the happened, wouldso would your advice towards the Zigglers change?

    10.Summarize your tax-planning technique for the Zigglers and supply a minimum of five tax-planning tips.

  4. Floyd October 4, 2013 at 1:11 am

    Hi, I’m Yagub And i’m from Azerbaijan.

    Presently I’m a afull time, second years students in the Nakhchivan Condition UniversityFaculty of Financial aspects.

    Meanwhile I’m prepared to restart my studies.

    I’ve taken TOEFL and my score is 82 IBT, 553 PBT.

    Also my GPA is simply excellent.

    I’d the Highschool rank “#1 of my class ’06” with GPA of four.75/5.00. And today my college GPA is 5.00/5.00

    Contact address is yaqubafs2005@hotmail.com

  5. Malena November 5, 2013 at 11:08 am

    they take 280.00cad monthly, now my daughter has 8grand and shes still under 2// it appears like im having to pay an excessive amount of towards her education monthly. Now I’ve got a financial emmergency,

    Im just wondering basically can withraw a few of the amount wishing for just 500.00cad to pay for a number of my financial problem. As well as can i reduce the quantity of her education plan. After my divorce with my exhusband I suffer a lot on my small financial. The financial institution takes money from my account however my exhusband isn’t giving me any single cents. Please help thanks.

    Please also advise basically may take the whole factor and perhaps transfer it to another bank? I’ve with CIBC at this time.

    Thanks

  6. Junior November 12, 2013 at 10:16 pm

    I’ve committed to an RESP in my children along with the govement grants or loans along with other may be I’ve got a savings close to 6000 I must make use of a small part of that to cover preschool. The govement grants or loans are only concerned with education but i am not sure should they have to mature or even the conditions from the conditions from the grant say they should be for school or college, or maybe they can be used as preschool. It is a CSTP mutal fund. My home is Ottawa Canada. Any help could be nice.

  7. Pierre November 19, 2013 at 7:52 am

    I’ve been seperated from husband since 2002. He missed from country and I’ve had no connection with him since 2006. There exists a 6 years old boy together. He adds nothing whatsoever. My home is the Toronto Area and want an attorney to stamp my divorce papers when i feel I don’t need to purchase his abondonment of myself and our boy. I additionally want to determine if the justice from the peace can grant me divorce free from chargre and just how. He’s never once compensated a cent or proven interest to the boy. I though i was for each other, but upon my pregnancy he mentioned he married me just for Canadian Papers. We seperated immediately. I want help……..can’t live knowing I’m married to some looser. Incidentally, he was deported in 12 , 04, returned to canada in March 05, immigration desired to deport him again in Jan06. He’s in hiding, Immigration cannot find him……..I simply need assistance……a good lawyer to help. My budget if necessary is $250.

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