Securing Your Child or Grandchild’s Financial Future

With the arrival of the year 2011, many of us are noticing how quickly time is passing. Over the past few years, many of us have seen newborn babies graduating into toddler diapers, or perhaps even quiet pre-teens turning into fun-loving teens. For those of us with children or grandchildren, or nieces and nephews, the time for them to be finished high school and off to college or university will come too quickly.

Many of us may enjoy giving gifts for all of the special occasions in our children's lives, but how many of us give a gift that can help them secure their financial future? Wouldn't it be wonderful to provide a helping hand for a young person's educational costs?

Did you know?

Are you aware that the Government will pay you some money now for your contribution to part of their schooling in the future – thousands in scholarships and more?

What are the estimated costs of a post –secondary education in the year 2025?

A 4-year bachelor degree at a Canadian University is expected to cost an average of $100,000! That means today's four year old will spend more than one hundred thousand dollars to obtain a degree. Today, many parents with 18 year olds do not have an adequate amount of disposable income to pay for books, tuition and school fees. Most parents in Canada are simply not prepared to spend an extra $20,000 plus dollars each year for their child's education. University students of today are taking on the staggering burden of large loans without realizing the potential difficulty they will face repaying them for years – with interest. So, what are your options? Saving for your children today, will help them pay for their education tomorrow. Consider a Registered Education Savings Plan (RESP) for your newborn baby or young children. Perhaps start an RESP for your grandchildren, nieces or nephews.

Worried about where and how to start?

It's simple:

First, your child needs a social insurance number in order for an RESP to be opened for them.

Second, you need to learn about RESPs, how they work, and how you can make them work for you – you need to speak with your financial advisor, or visit the website for the Canada Revenue Agency (www.cra.ca)

Take the first step now to secure your children's and grandkids' financial and educational future.