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[knowledge-first-financial-blog]

Find the Perfect RESP Plan for your Child

Going off to college is a whole new world. It is an exciting adventure where your children are the captain of their own ship. Registered education savings plans are a popular choice amongst Canadian parents to finance this vision, but contrary to what some may think, an RESP does not describe a single type of plan with general features and zero overall flexibility. Subscribers have three programs to choose from: individual, family and group. The individual plan is a great way to save for the education of an only child; a family plan is optimal for a family with many children. A family plan is useful if one of your children don’t go to university or college. The funds can easily be given to the child who is pursuing higher education. With the individual and family plans, subscribers have the additional perk of choosing investment opportunities, like GICs and mutual funds. For subscribers who would like professionals to make these decisions for them, the group plan is advisable. The monthly contributions of other group plan users are combined and invested together.

Regardless of which one you choose, RESPs permit your money to grow in a tax-free savings account. When funds are removed from the account, it is now taxable income. Even so, students tend not to make a lot of money during schooling years, so they will probably pay little to no taxes.

In order to get a good education today most people will need to apply for student loans. Many schools are so expensive, and without a loan, it becomes almost impossible to pay for the school you would like to attend. The alternative is an RESP, but it requires foresight on the part of the parent. There is enough flexibility that parents can choose the perfect plan for them.

You can speak to a Knowledge First Financial advisor today for more information. This firm has been in business for over 50 years and has paid more than 2 billion dollars to qualified students for their postsecondary education. At this time, Knowledge First manages nearly $3.3 billion in funds and investments and serves more than half a million parents across Canada.

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British Columbia Education and Savings Grant is available in conjunction with an RESP at Knowledge First Financial.