Ascertain Your Children’s Future through Registered Educational Savings Plan (RESP)

Good education has long been considered as one of the greatest gift that parents can bestow upon their children. As the saying goes “Knowledge is Power”; it is an undeniable fact in this day and age that no one can walk triumphantly through life, without it.

Proper education has countless advantages and may serve as a better edge in this competitive modern world. Hence, acquiring a college degree can definitely take anyone to places on where he or she may dream of going. Another point to consider why everyone is urged to pursue a higher education is because of the fact that if a person is well-equipped with an advanced level of education, he or she has better odds in landing on his or her dream job compared to those who have not obtained one. Thus, investing in the best possible education for their children is the smartest decision any parent can make.

Despite all the eminence of acquiring a higher and sufficient education; the sad truth remains that not everybody can afford to have one. This concern has caused tremendous vexation to parents who have unstable jobs and are earning considerably lower wages compared to others. The thought about the security of their children’s future has deprived them of having tranquility and peace of mind for the longest time.

Canadian parents, who have been worrying on how to afford the expenses for their children’s higher education in the near future, are encouraged by the government to apply for a Registered Educational Savings Plan (RESP).In pursuance to obtain the said education savings arrangement; parents are advised to communicate with a plan provider for further assistance. One of such is the Heritage RESP, which is one of the most reliable names in the industry for more than 50 years. The said company is a distinguished financial supporter which has since never faltered to help educate a growing number of recipients for the past years.

Parents of the children, who are the beneficiaries of the Heritage Education Funds Inc., can be rest assured that their young ones will have the opportunity to undertake the highest standards of education whatever the future may hold.

Registered Educational Saving Plan (RESP) Can Protect Your Child's Future

Heritage Education Funds

Parents in Canada, who are worried about the financial aspect of the higher education of their children should try and become a part of a financial mechanism, which can help them secure the money that they will require when their children are ready to go to university. While there are many programs that are run by the government to help children in Canada pursue higher education, in most cases these grants are not sufficient and would require some inputs from the student or from the parents. 

Parents who want to prepare financially for the higher education of their children should create a Registered Educational Saving Plan (RESP) for their children. By creating a RESP, you will be able to make low-risk investments that can help you secure the money that you will require for your child in future. Children with RESP also benefit from the Canada savings grant, through which the government adds to your RESP savings. Also because the government does not charge any tax for the returns you get from your investments as long as they stay in your RESP. This is another reason why your savings will grow faster. 

In order to create a RESP for your child you will need to contact the RESP provider. It is the job of a RESP provider to properly facilitate RESP for you. Heritage Education Funds Inc. has been helping families who wanted to create RESP for their children. It has been doing this for more than 50 years and has an excellent track record. They have already paid out $900 million till date as Educational Assistance Payments (EAPs). 

A very important aspect of a RESP provider is their association with other financial assistance programs run by the government, as these associations will help the student to get more financial benefits. Heritage RESP is associated with four major financial assistance programs run by the government, and is therefore well equipped to channel more financial benefits to the beneficiaries of the RESPs created with them. Heritage RESP subscribers have received more than $400 million to date from various grants programs run by the government.

Registered Education Savings Plan: Individual Plan or Family Plan

The cost of higher education for children in Canada is a major concern for almost every household in the country. It has been on a constant rise during the past decade. This has made many parents concerned about the future of their child's education. There are many programs that are run by the government in the hope of reducing these worries for the parents. But one of the most effective programs has been Registered Education Savings Plan (RESP). This program is approved by the government and can be effectively used to prepare for the expenses related to the higher studies of your children.

The most important requirement of getting a Registered Education Savings Plan (RESP) for your child is the Social Insurance Number. Once you have the SIN, you will have to follow some basic steps to get started. There are two kinds of RESP - Individual plan and Family plan.

Individual Plan

There can be only one beneficiary in the individual plan. The beneficiary can also be the subscriber. While there is no restriction of age for RESP, many grants including CESG are paid only to beneficiaries who are under 18 years old. In case of RESPs, the beneficiary can be replaced by anyone, including those who are not blood related. However, in case of CESG, the grants will be required to be repaid.

Family Plan

There can be more than one beneficiary in a family plan. The subscriber must be related to the beneficiary by adoption or blood. This includes siblings, grandchildren or children of the subscriber, by adoption, marriage or by blood. While beneficiaries can be added anytime when the plan is active, only individuals below 21 years old can be added.

If the number of beneficiary is more than one, then you will need to allocate the percentage of contribution for each beneficiary. In case of twins, you might want to allocate 50% each, however, in case of beneficiaries of two separate ages you might want to allocate more for the older one, as you will have extra time for the younger one.

It is important to get your RESP done by a quality service provider like Heritage Education Funds Inc. A quality service provider would be able to suggest you the best options and will help you get the maximum benefit out of the various educational Grants programs run by the government. A good RESP provider will be associated with maximum educational Grants programs run by the government. Heritage RESP is associated with four major educational Grants programs.

While creating a RESP, it is important to carefully choose your options. While choosing your options always keep your long term financial ability in view. With Heritage RESP, you will have the option to deposit your savings monthly, annually, once in five years or once in 10 years. Multiple options and flexible terms and conditions really help when you are planning your financial future. There is nothing better than having enough money to pay for the expenses of your child's higher education. And with the help of Registered Education Savings Plan (RESP) you will certainly be able to ensure the money required for your child's higher education.

Saving Money for Your Child's Education with Heritage RESP

When it comes to the future of your child, investing in their education will really help. While there are many options of investments that you can use to ensure funds for the higher education of your loved ones, the best option in Canada remains Registered Education Savings Plan (RESP). RESP is approved by the Canadian government and is a tax exempted savings account. Saving money with RESP is very safe and it increases your chances of benefiting from other financial assistance programs for education run by the government, for example Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB).

The Process of Creating an RESP Account

The first step is to get a unique nine-digit Social Insurance Number (SIN). This is compulsory for everyone who wants to apply for financial support from the government in Canada. You can easily get a Social Insurance Number by applying for it and by providing the required documents,like proof of citizenship and birth certificate.

The next step is to select the most reliable RESP provider. You can search for RESP providers online, where you can easily get a list of the providers along with their contact information. Many of the RESP providers are associated with a number of financial assistance programs from the government. The provider with maximum associations and flexible terms and conditions will be the most suitable option.

Registered Education Savings Plan (RESP) can be initiated by anyone such as parents, relatives or even by a group of people who would like to invest into the future of a child. You can pay the investment amount monthly or annually or even once in five years or 10 years. These options can be selected while you create the account.

For over 50 years Heritage RESP has been supporting Canadian families to have enough funds ready for the higher education of their children. They offer a number of plans that you can select from. More than 400,000 children are enrolled with Heritage RESP and with assets worth more than $2 billion, the future of the children enrolled with this organization surely looks bright.