3 Ways to Maximize Your Child’s RESP

3 ways to maximize your child's Registered Education Savings Plan (RESP)

Starting a Registered Education Savings Plan (RESP) is a smart way for parents to help their children reach their dreams. By saving in an RESP you’re not just making sure you’re more financially prepared for the price tag that comes with higher education; you’re also easing the burden of debt on your kids and yourself. The money you save today can help prevent you and your child from borrowing in the future.

Given the rising cost of tuition fees in Canada, it’s important to make sure you’re making the most of your RESP.

1)      Top up whenever you can: It’s fantastic that you’ve gotten an RESP started and even better if you’re doing so with regular contributions. Consistent, monthly payments to your child’s RESP can help keep you on track. Another tip is to find opportunities where you can boost your savings. Can you add your tax refund to your RESP? A promotion at work could help you consider adding a bit more to your child’s RESP. As the old saying goes, “every little bit helps”.

2)      Stay Informed: keep up on information and updates on your child’s RESP. Don’t just “set it and forget it”. It’s beneficial to review your RESP and stay informed. This can help ensure you’re making the most of government grants, keep you on top of the latest updates about your account and help you maximize your RESP savings.

3)       RESP Gifting: On birthdays, special milestones or holidays, consider asking family and friends to contribute money to an RESP as a gift. It's a great way to add to your savings and get more out of available government grants. Toys and clothes are great presents, but an RESP contribution is a gift that will help build your child's future success.

If you've already started an RESP, you're already on the right track to saving for your child's future education. Keep these tips in mind to meet your goals and make the most of saving to help your child reach their dreams.

Canadian Scholarship Trust Plans are only sold by Prospectus. Download the Plan Summary and Detailed Plan Disclosure - Prospectus