The Right Way To Save For Your Children39s Education In Canada

Early Childhood Education Programs

Tips#1: Read Together Every Day
Read to your child every day. Make this a warm and loving time when the two of you can cuddle close together. Bedtime is an especially great time for reading together.
Tips#2: Give Everything A Name
You can build comprehension skills early, even with the littlest child. Play games that involve naming or pointing to objects. Say things like, "Where's your nose?" and then, "Where's Mommy's nose?" Or touch your child's nose and say, "What's this?"

The Government of Canada has introduced a special investment vehicle called as the RESP through which the parents and other family members can invest funds which have to be solely used for their children's education purposes. This RESP investment plan is very much preferred in Canada for it offers several tax benefits when these funds are utilized for higher education purposes.

The tax benefits of RESP accounts include tax free income growth and tax free withdrawal, if these funds are utilized for the education purposes of grown up children. In case, you too wish to invest in RESP, few key points would be of great use to you

Amounts to be invested – There is no maximum limit to the amount which you can invest in however there is a minimum limit of $50,000 per child.

Children as Beneficiaries – Since these accounts are solely for saving for higher education purposes, you have to nominate them as the beneficiary of the account. Also, children can have multiple RESP accounts in their names if they have more one well wisher who is willing to invest in their higher education.

Age Limits – The funds can be utilized for educational purposes by the beneficiary at any age till he or she turns 25. In case, these funds remain unutilized the account has to be dissolved.

Tips#3: Say How Much You Enjoy Reading Together
Tell your child how much you enjoy reading with him or her. Look forward to this time you spend together. Talk about "story time" as the favorite part of your day.
Tips#4: Be Interactive
Engage your child so he or she will actively listen to a story. Discuss what's happening, point out things on the page, and answer your child's questions. Ask questions of your own and listen to your child's responses.

No tax on contributions made to RESP – This point highlights the fact that your investments made in RESP grow at a much faster rate for they are not taxed. You could check out various financial institutions such as investment houses, trust companies, banks, credit unions, mutual fund companies which offer the same to you. At the same time, be sure to check out their offerings with regards to investments for they should be safe and secure while they meet your financial targets as well.

This does make RESP accounts quite attractive and secure but then you need to decide upon the amount of money you are capable of saving and investing over and above your normal family expenses which could include mortgage payments, insurance premiums, utility bills and many more. Bearing this in mind, you need locate a reliable financial institution which offers you good advice on RESP accounts and investments.

In case you wish to learn more about RESP accounts and investments, you could always log online and get the required information. There are many websites which offer advice and solutions related to insurance and financial planning. You could even approach an insurance advisor online who could guide you through the entire process of opening the RESP accounts, amounts to be invested and other key points after thoroughly understanding your requirements and amounts you are willing to invest.

Tips#5: Read It Again And Again And Again
Your child will probably want to hear a favorite story over and over. Go ahead and read the same book for the 100th time! Research suggests that repeated readings help children develop language skills.
Tips#6: Talk About Writing, Too
Draw your child's attention to the way writing works. When looking at a book together, point out how we read from left to right and how words are separated by spaces.
Updated: December 16, 2017 — 7:06 pm
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