Educational Plans

Help you child be prepared for the future

What If You Had The ability To Design Your Child’s Future?

Imagine your child, degree in hand, ready to start a professional career. But do you ever ask yourself how you will be able to give your child this chance with all the financial demands in today’s world?

Giving your children access to a post-secondary education is something parents hope to be able to do! Unless you decide to take out a loan, it may be difficult to find the money needed to pay for a 4-year educational program for just one child. Statistics Canada revealed that university tuition fees have risen 135%* in the past ten years!

*Canadian average

university cost graph


Projections indicate that in 2028 it will cost more than $114,063 for a 4-year university program for a student living away from home.

Will My Children Go To University?

Its totally up to you! If sending your children to university is one of your goals, then you have to act NOW!

It used to be that post-secondary education was a choice. Now it seems to have become a necessity to ensure a place in today’s job market. Furthermore, the job market of the future requires more training and education. More and more employers are hiring specialized personnel. According to some Canadian studies, two out of three jobs now require a post-secondary diploma. How can we hope to provide our children with the opportunity for a higher education?

Start Investing In Your Children’s Future Now!

Given the cost of a post-secondary education, it’s better to start saving early. Regular contributions are also a great way to achieve your objectives. Regardless of the child’s age, it’s never too late to invest in their future.

But what is the right kind of vehicle to invest for my child? The RESP will help you build a promising future for your loved ones today!

What is a Registered Education Savings Plan?

A registered education savings plan, commonly referred as an RESP, is the best financial vehicle to help you save for a beneficiary’s post secondary education. Just like an RRSP, the federal government allows you to accumulate invest income on a tax-sheltered basis until the funds are withdrawn from the plan. In short, RESPs are to education what RRSPs are to retirement!

A Post-Secondary Education Is A Necessity In Today’s World.

Who Can Subscribe To An RESP?

Anyone with an interest in the future of someone close to them can subscribe to an RESP plan, whether it be the parents, grandparents, godfather, godmother, uncle, aunt or even a friend. The plan subscriber, whether a resident of Canada or not, is the person who signs the contract, and makes contributions to the plan. A co-subscriber can also take part in the plan.

Who Can Be Designated As A Beneficiary Of An RESP?

You can appoint anyone you wish as the plan beneficiary: your child, grandchild, nephew, niece, etc. There are no restrictions on the beneficiary’s relationship to you. However, the beneficiary you appoint must be age 14 or under.

But Why An RESP? What Makes It So Special? – GOVERNMENT GRANTS!

Canada Education Savings Grant Program (CESG)

In January 1998, the federal government created the Canada Education Savings Grant (CESG) program. This program is primarily intended to encourage parents to save for their children’s post-secondary education.

The CESG provides an extra 20% on top of the annual contributions paid into the plan, up to $500 per year per beneficiary. There is a lifetime limit of $7,200 per beneficiary.

THAT’S FREE MONEY FROM THE GOVERNMENT! Why not take advantage of such an opportunity for your children?!

What About Low Income Families? Are They Entitled To Grants Too?

For low-income families, the grant can total up to 40% of the first $500 of contributions. The Canada Learning Bond (CLB) can also be paid to children born on or after January 1, 2004 and the allowable maximum over a 15-year period is $2000. So even low income families have the ability to save for their children too!!!

Quebec Education Savings Incentive (QESI) * For Quebec Residents Only

Since 2007, Quebec residents have been entitled to an annual grant equal to 10% of their contributions (up to a yearly maximum of $250 and a lifetime maximum of $3,600). Low-Income families can receive up to 20% of the first $500 contributed.

Alberta Centennial Education Savings Plan (ACES) * For Alberta Residents Only

When conditions are met, the Government of Alberta provides residents of this province with an initial grant of $500 and three subsequent grants of $100 (at age 8, age 11 and age 14).
All these grants accumulate on a tax-sheltered basis in the RESP and become part of the Educational Assistance Payments (EAP) made to the beneficiary when he/she goes on to pursue post-secondary studies. Furthermore, the contribution limit is not affected by the grants!

That’s Great! But How Do I Obtain These Grants?

The grants are paid directly into the beneficiary’s educations savings plan. Here at Wealth in Motion Ltd. we submit the application for you!

In order to be eligible for the grants, the designated beneficiary must have a Social Insurance Number, and must be a resident of Canada.

The CESG and QESI are available for children age 17 and under. For beneficiaries who are 16 or 17 years of age, there are conditions that must be satisfied for the grants to be paid. Please feel free to contact us here at Wealth in Motion Ltd. for more details! We’ll be more than glad to provide you more information pamphlets and reading material as well!

Investing in your child’s future is one of the most precious gifts you can give them. However, saving is not always easy. Given the amount a post-secondary education will cost by the time your child reaches adulthood, it’s better to start saving early and on a regular basis!

A Registered Education Savings Plan is an ideal financial vehicle to help you save for a child’s or grandchild’s post secondary education.

Contact us here at Wealth in Motion Ltd. today for more information! Our Licensed RE SP specialists will be more than happy to assist you in every way possible!

Take advantage of the professional services offered by a Wealth in Motion Ltd. Advisor. We can help you design a bright financial future for your child!