Educational expenses are skyrocketing with each passing year. It’s extremely important for parents to start saving for their kid’s higher education from an early age. The post below offers some tips to keep in mind that will help you in successfully funding your child’s education.
Go for RESP
RESP is certainly one of the most popular avenues for Canadian parents when it comes to saving for their kids’ education. Launched back in 1998, RESP offers the amazing benefit of tax-free savings. The Canadian federal government extends 20% grant for RESP contributions which can be up till $2,500 per year.
Sign up for TFSA
This is another plan to enjoy tax-free savings for your child’s higher education. The acronym of “Tax-Free Savings Account”, the account enables parents to draw out savings whenever they wish to.
Invest in company shares
Do you have some degree of idea about stock and share markets? If so, you may invest a portion of your savings in share market. But be careful. Share market investment is a highly profitable yet risky business. You must keep yourself updated about the constant market conditions to not to miss out on a potential opportunity. Most importantly, you should take time out to study about the companies whose shares you are investing in. You may take the help of The Canadian Business Journal to stay updated about Canadian businesses.
Enrich your savings
Any smart parent religiously allots a significant portion of his or her monthly income in savings account. But when you are looking into a bigger picture (read child’s education), you must send any excess money into your savings whenever you get something. These could mean hefty company bonuses or some cash prizes that you win. The bottom-line is you will have to enrich your savings with any additional money you get by chance.