Providing for your child's education
A child's future depends on a good education and a solid financial security plan; one that not only helps meet the ever-increasing costs of post-secondary education, but one that also fits your lifestyle and goals for the future.
There are several options to saving for your child's education such as registered education savings plans (RESPs) and tax-free savings accounts (TFSAs).
Talk to me today and help put your child on the path to a bright future.
Benefits of an RESP: Save Early, Earn More
With the help of an RESP you, as a parent, friend or family member, can start putting aside money for a child’s post-secondary education. Although contributions are not tax deductible, the money within the plan grows tax-deferred until your designated beneficiary withdraws it., In addition, the following grants may be available:
- Canada Education Savings Grant
- Canada Learning Bond (if your child was born after December 31, 2003, and if you receive the National Child Benefit Supplement as part of the Canada Child Tax Benefit, commonly known as “family allowance” or “baby bonus.”)
Tax-Free Savings Accounts (TFSA)
A TFSA is not a traditional savings account. It’s a type of account that allows you to earn many types of investment income tax-free (including capital gains).
If you are a Canadian resident aged 18 and older with a valid social insurance number, you can save up to $5,000 every year in a TFSA.
The income generated in a TFSA (for example, investment income and capital gains) is tax-free, even when it is withdrawn. This makes it a good alternative for saving for a child's education, as it allows you more choices with how to use the money.
To discuss this further, I would be happy to meet with you. My flexible hours allow me to find a way to fit into your busy schedule. Please contact me to set up a time. I can even meet you in the comfort of your home if it is more convenient for you.