RBC RESP – are you saving?
Do you have Registered Education Savings Plans - RESPs for short – set up for your kids? We do, and they are with the RBC, but I’ll be honest, when our budget got very tight this year, we temporarily stopped putting money away regularly. A few things had to give, and that was one of them. However, we do ensure that we put a little bit in once in a while, and my brother has very kindly given my kids a cheque for each of their birthdays to apply to their school savings funds.
One of the reasons that we make sure we even put a little bit away is that the federal government will also help you save. A Canada Education Savings Grant (CESG), also known as basic CESG, is money paid by the Government of Canada directly into a RESP. A CESG adds 20% to the first $2,500 in contributions put into an RESP annually for an eligible beneficiary. This can be done until the end of the calendar year in which the beneficiary turns 17.
Geez. That’s a lot of acronyms. The important part is that if you save, you get free money for higher education for your kids!
You have the flexibility to use the RESP for university, college, apprenticeship, non-credit courses etc., and if your child doesn’t use the funds, you can use your contributions and earnings to fund your RRSP.
RBC can help you figure out how a small amount of regular savings can add up. Just writing this post has got me thinking again about figuring out how we’re going to start contributing again, even in a very small way. It’s hard right now, budgeting with three little kids, but it’s also going to be hard to budget for three kids in higher education.
More info can be found this Thursday night at a Twitter party hosted by RBC and Mom Central Canada:
SAVE THE DATE! Join us Thurs Sep 26 at 9pmET when talk plans for Baby’s future at the #RBC_RESP Twitter Party! (client)
— Mom Central Canada (@MC_Canada) September 23, 2013
Disclosure: I am part of the RBC RESP blogger program with Mom Central Canada and I receive special perks as part of my affiliation with this group. The opinions on this blog are my own.
Posted: September 23rd 2013 under family, good things, sponsored.
Tags: #savewithrbc, finances, government, mom central canada, money, RBC, registered education savings plan, RESP, RESPs, Royal Bank of Canada, saving