Yesterday I went to the bank and opened an RESP for my daughter. This is something I've been wanting to do for quite some time now, but I wasn't sure how to go about it, or if I could afford to put money away for her education.
Having to get a student loan for myself made me realize how important an RESP is. If I want to help Sidney pay for post secondary school, and avoid the hassle of student loans, this is the way to do it.
And once I got to the bank and sat down with one of the employees I found out it really isn't as complicated as I thought it would be. Mind you, I'm still not one hundred percent sure on everything he was talking about, but he gave me a gigantic booklet I can read through later.
One of the most interesting things I found out earlier this summer was that because we're considered a "low-income family" living in Ontario, the government will put $500 into Sid's RESP right away. Every year afterwards until she reaches the age 15 they will deposit another $100 up to $2000. On top of this free money, they will match up to 40% of whatever I put in. So if I deposit a $100, they will deposit $40! Pretty cool, eh? It's called the Canadian Learning Bond (or CLB) and it's what motivated me to set up an appointment this year.
I also have it set up to automatically deposit $50 at the end of each month into her RESP. I might have to switch it to something cheaper but I can change things up anytime I want to. Including the option to deposit money into it whenever.
The bank employee also explained a little bit about investments with me, and interest rates and high risk accounts and what not. My brain doesn't work with numbers, or interest rates, or other such things, so I had to kind of go with his opinion on it. If I do learn more about this stuff and feel like I want to change it later on, I can do that, too.
The bank employee also explained a little bit about investments with me, and interest rates and high risk accounts and what not. My brain doesn't work with numbers, or interest rates, or other such things, so I had to kind of go with his opinion on it. If I do learn more about this stuff and feel like I want to change it later on, I can do that, too.
Getting this RESP finally set up for Sidney made me feel really good. I like knowing I'm doing the best I can for my daughter. And it's nice to know there are so many different programs and options for lower income families, you just have to figure out where to go and who to ask.
Did your parents have money put aside for your education? Or have you set one up for your child(ren)?
Thanks,
Cole
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That's really great that you're getting this set up for your daughter! I had something set up by my grandparents as well as some money put aside from my parents, but there is still going to be a lot of student debt in my future.
ReplyDeleteThank you :). It's crazy how much post secondary costs! Not only is it tuition, but supplies, and books, and living expenses. It really adds up quickly. Well, at least you had some help! :) Every little bit adds up.
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