Which Yummy Mummy wouldn’t want their children to excel in the classroom? We all hope the countless hours of singing ABC and pouring over our kid’s homework will, one day, pay off.
But beyond academic skills, there is another sure fire way to jumpstart our kid’s future. Help them graduate debt-free with a post-secondary education.
This is not about being financially clairvoyant. It’s about smart, good ol’ fashioned savings – taking advantage of an RESP (Registered Education Savings Plan). And with the spring season around the corner, a time for new beginnings, there’s no time like the present to get financially savvy.
Consider this:
Statistics Canada has been tracking the undergraduate class of 2000. Over half of these students (53%) left post-secondary school owing money. Those with only government loans owed an average of $19,300 but those with loans from more than one source owed an average of $32,200. Fast forward five years later, and of the 55% of students who still owed money, 41% reported difficulties repaying their student debt. This was despite a 94% employment rate among students graduating with debt.
The majority of these graduates (56%), in addition to joining the workforce, were in committed long-term relationships. What’s more, 2 out of every 5 also had dependents. These young families were now in the less than ideal situation of trying to repay their own student debt, when they should be starting to save for their children’s future education. It can become a vicious circle.
Despite our best efforts, as our kids grow up, we can’t prevent the inevitable skinned knees, the stresses of year-end exams, or the heartache of their first break-up. But with a little pre-planning, we can control some of their future debt. For Yummy Mummies, that’s encouraging news!
Now given our flailing economy with declining home values and uncertain investments, making financial decisions at a time like this may feel daunting. This is where a little bit of research goes a long way.
The first step is to find a reputable RESP provider with experience and a proven track record. An RESP savings plan is for the mid-term and will be used up over a relatively short period of time – usually three to four years. You will want to find an RESP expert who can provide strong yields without directly exposing your hard-earned savings to stock market risks.
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Heritage Education Funds has been helping parents save for post-secondary education for over 40 years. They invest in the safety and security of government bonds and guaranteed securities so your money is there when you need it. They’ve seen the fads come and go, with stock market ups and downs, and have amassed a depth of expertise that’s hard to beat.
Check out the interactive video on
www.heritageresp.com today to get up to speed on how RESPs work, how to take advantage of up to $7,200 in free money from the Canada Education Savings Grant (CESG*), and how grandparents can also get involved in making RESP contributions.
Heritage Education Funds RESPs are offered by prospectus only. Heritage Education Funds is the trade name of Heritage Education Funds Inc.
* Certain conditions apply
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