Making your RESP possible

Saving for a child's education can be a challenge. So how do you make it work?

Pay yourself first

Financial advisors say you should "pay yourself first." In other words, treat your savings plan like any other household expense, one that has to be paid each month like your rent, mortgage or electricity bill.

A Heritage RESP helps

Opening a Heritage Education Funds RESP is a great way to "pay yourself first" because it:

  1. Helps you establish and stay with a regular savings schedule
  2. Helps your savings grow steadily and securely
  3. Defers the tax on the investment earnings from those savings

Take control of your monthly expenses

Smart savings here and there on your household budget can add up to big plans for your family’s future:

Top
1

Keep a complete record of your household spending for a month to find out what’s really happening. For example, you can:

  • Make a list before you go shopping (and stick to it)

  • Save your grocery receipts and see how much you're actually spending – you might be surprised!

  • Watch the local paper for money-saving coupons and flyers – then buy in bulk when things are on sale
2

Consider the value you are getting from “discretionary” purchases, such as entertainment, dining out or other things you can cut down on or do without.

  • A lot of restaurants offer 2-for-1 promotions; it means you can still eat out occasionally without breaking the bank

  • Steer clear of expensive cinema snacks – rent instead and take advantage of "no late fees" and other discounts
3

Try to balance immediate family needs and long-term lifestyle planning, making choices you and your family can live with every day.

  • Take a vacation in your home town – you'll be surprised what you discover

  • Look into "swapping" accommodations with someone across the country for a vacation

  

After making your spending changes, give yourself three months, then see if you've kept to your goals. If you have, congratulations! And if things haven't gone quite as planned, reset your goals to an achievable level and try again.

Contribute small amounts more often

Contributing small amounts to your child's RESP on a regular basis – say, once a month – is always easier than making large once-a-year contributions. Yet over time, the investment earnings on those small amounts can compound and really add up. You also get the added benefit of both the Canada Education Savings Grant and investment earnings on this grant, and any other government grants you may be entitled to receive.

Talk to us about your RESP

Your local Heritage RESP Representative can advise you on a realistic contribution schedule to achieve your child’s education goals. Talk to us about your family’s education plans.