It's no secret: Kids who go on to college or university after high school stand a much better chance of career success and economic advantage than those who don't. In fact, based on previously gathered data, over the course of a typical career, a university graduate will earn $1 million more than someone who has a high school diploma only.
But the cost of post-secondary education in Canada keeps getting higher and higher, making it less and less affordable for the average Canadian family. So it makes a lot of sense to start putting away money now, allowing it to grow, to help pay for your son or daughter's post-secondary opportunity. And the best way to do so is by starting a Registered Education Savings Plan (RESP) with a reputable education savings plan provider.
Aside from culminating in a degree or diploma – and possibly post-graduate studies – saving now for college or university has many added benefits:
• It is a powerful thing for parents to communicate to their children that they expect them to go on to college or university and that post-secondary education is a valuable investment.
• Knowing that a college or university education is in the future, children tend to focus on their elementary and high school grades to ensure they'll go to the school of their choice.
• Because saving for post-secondary education through an RESP is structured and long-term, parents feel less stress about facing the cost -- or not being able to contribute – when the day finally arrives.
• With the Canada Education Savings Grant program adding tax-deferred supplements each year to an RESP, college or university is that much more attainable.
• Even if you or your spouse never went past high school, paving the way for your kids to do so will begin to ensure that future generations of your family will get the education you never did, and they deserve.
For more information about saving now for post-secondary education, talk to a financial adviser, or visit www.respdac.com.
Find out ways to save up early for your children's tuition here: Saving money for college or university: RESPs, budgets and more.
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