How to Help Your Child by Planning for a Post-Secondary Education
If you're the proud parent of a newborn baby, here's something to think about. Once your child reaches the age where he can enroll in a college or university, you may have to pay close to $100,000 or more to complete his education. Both last year and this year, the average annual cost to attend a university in Canada was $5,772. These prices are only going to go up as the years go by.
When you consider the extra costs of buying books and all of the other living expenses that go along with a post-secondary education, it's hard to imagine how you're going to be able to handle paying all the bills. Here are some helpful tips to help you get started with the funding.
1. Start up an RESP
Register an RESP for your child as soon as you can. There is no age minimum so you can get saving when you child is young. You should also let the grandparents know that they can open an RRSP for a future student as well. When you make payments towards this fund, the Government of Canada will match your contribution with an extra 20%. The government will provide a maximum of $500 yearly towards this education plan.
2. Take a look at GICs
GICs can be taken out as a future schooling fund. This money will grow throughout the years and if you continue to take out new GICs whenever you can, you can build up quite a solid nest egg for your child's education in the future.
3. Ask for help from relatives
Let your relatives know that you have started saving for your child's education and ask them for small contributions when holidays are approaching. Most relatives would be happy to give $10 towards the education fund and buy a smaller gift for the child. Most people understand the importance of an education and feel good when they are able to contribute to a worthy cause like this for a close family member.Posted by on