One of the great joys of being a grandparent is spoiling your grandchildren. Watching them unwrap the latest toy sparks a light in your eyes, as well as theirs. Greater still—and certainly longer-lasting—is the pride and joy of watching your grandchildren play, and learn, and grow into accomplished scholars and professionals.
Since it's a full-time job keeping up with changing tastes and the latest trends in toys, the next time a birthday or holiday rolls around, consider giving your grandchildren the gift of education. Registered Education Savings Plans (RESPs) are a simple and effective way to give students a leg up when it comes time to enroll in post-secondary education.
“18 years from now, the costs of a university education, including tuition, room and board is expected to top $100,000,” says Peter Lewis, a vice president with the Canadian Scholarship Trust Foundation (CST), one of the leading providers of RESPs in Canada. “This is just one reason why it's so important for families to invest in RESPs early and regularly.”
“According to the federal government, 70 per cent of the new jobs being created in Canada require a post-secondary education,” he continues.
By investing in RESPs, you'll also teach your grandchildren a very important lesson about the value of a long-term savings strategy for big expenses like a car, a home, or even their own retirement. So what's the best way to climb the $100,000 mountain?
“That's the $64,000 question,” says Lewis. “It all depends on your financial situation and expected needs, so it's important to speak with a knowledgeable RESP professional.”
Professionals who specialize in RESPs can counsel you on all the details , including how registered plans can grow tax free , and the several ways the government will add to your investment and increase its value.
Piece by piece, it all adds up. They say it takes a village to raise a child, but who needs a village when there are grandparents?