Lesson 1: The Importance of Heritage RESPsStatistics Canada has estimated that university and college tuition could cost over $100,000 by 2025*. Families who neglect to invest in a Canadian RESP run the risk of withdrawing retirement funds or mortgaging their home to pay for the sky-rocketing cost of a university or college education. A Canadian RESP will empower your children with a university or college education without the worry of paying for it.
* This amount assumes that the student will pursue post-secondary studies away from home and is calculated using the average annual increase in the total cost of tuition and the average annual increase in the cost of accommodation, books, transportation and meals from 1995/1996 to 2006/2007 (5.69% and 4.53%, respectively). Source: Statistics Canada.
Lesson 2: New baby. How to open a new RESPOne of the simplest ways to help fund your child's future post-secondary education is with an RESP from Heritage Education Funds. It is easy to get started. Here's how: You can conveniently submit your request on-line by contacting us here. You can find a local Heritage RESP representative, click here and locate one of our RESP experts conveniently located near you. Alternatively, you may call our Customer Service Team locally at 416.502.2500 or toll free at 1.800.739.2101. Whichever way you contact us, we will help you set up a Plan that suits your financial needs and meets your child's future education objectives.
Lesson 3: We make it easy for you to save!A Heritage RESP gathers all your contributions and the government grant payments you're entitled to and invests in lower risk investments. Your plan is managed and administrated by our very own RESP experts.
Lesson 4: New Families are on a tight budget – How much do you contribute to an RESP?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 gain 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.
Lesson 5: The gift of education may be the best gift you can giveEvery parent wants to give their child the world, but what is it that you can offer your kids that can really make a difference? Saving for an opportunity to send them to a post-secondary education may be the best gift you can provide. Education is something that can never be lost, or taken away. It provides opportunities by opening doors to better jobs.
There are government programs available to assist you, such as the Canada Education Savings Grant (CESG). How this grant works is the federal government matches 20% of the first $2,500 contributed to the RESP annually, that's as much as an additional $500 per year when it's paid out*.
Call a Heritage Rep today to learn more about RESP's and how they can work within your budget. Contact us.
* Basic Canadian Education Savings Grant amount equal to 20% of yearly contributions, up to an annual maximum of $500 per eligible Beneficiary, with a lifetime maximum of $7,200.
* Certain conditions apply. See Prospectus for full details.
Lesson 6: Do RESP's have tax consequences when it's time to use them?Investment income on contributions up to $50,000, are tax-sheltered until withdrawn by the student (Beneficiary) and taxed at the student's tax bracket. This often results in minimal tax since students tend to be in low tax brackets and can often claim tax credits on educational expenses*.
When the child is registered into a qualifying post secondary school, they will be eligible for payments from their RESP, which are known as Educational Assistance Payments (EAP). These payments must be claimed as income on their tax return.
*Certain conditions apply. See prospectus for full details. Heritage does not offer tax advice. You should seek independent tax advice.
Lesson 7: Use your RESP
When it's time for your child to use their Canadian RESP and pursue their university or college education, your Heritage Educational Assistance Payments (EAPs) may be applied to cover costs at many post-secondary institutions worldwide.
Lesson 8: About OSAP
OSAP provides eligible Ontario Students who qualify for post-secondary education with a financial assistance loan to help pay for tuition, books, living cost, transportation and other education-related costs. This money is borrowed and after graduation the student needs to pay it back.
Click here for more information about OSAP.
Lesson 9: Cost of Education Around the World
The cost of post-secondary tuition around the world can be surprising, even more so for international students who often pay double the tuition fees, check out some of the current costs listed in this chart. View Chart