Things got real, real quick after Finn was born. Not only are we stressing out trying to make sure he is getting the best of everything right now, there is also his future to think about. The hubby and I have conflicted views on what we hope Finn to be when he grows up, (I want doctor – Hubby wants athlete, obviously…) But, at the end of the day it’s all up to the little guy. So, with most employment requiring post-secondary education or training and education costs increasing every year, we need to be ready for anything!
That’s why I wanted to get a jump-start on saving for Finn’s Future. However, like most people, I had no clue on where to start. After setting up an appointment with a Financial Coach at Libro, I was able to get the 101 on how to set up a plan for both Finn and our futures. Plus, we found out that the government wants to give you money to make it easier to help your children obtain post-secondary educations without going into massive debt. How? Registered Education Savings Plans (RESPs)!
How do RESPs Work?
According to my Libro Coach, the government will give you $500 (or 20%) for every $2,500 you give per child up to a max of $50,000 per lifetime. That means you get $7,200 of free money plus the interest. Plus, based on your net family income, you also may be eligible for an extra 20% on the first $500 of annual RESP contributions.
So, we figured out that if we are hoping to save $2,500 per year, we would need to budget just over $200 per month. Because of my maternity leave, the first year we aren’t committing that per month, but your Coach at Libro can help figure out what is best for your household and goal during your very own coaching session. They will help you come up with a plan that let’s you live your life today while saving for the future. Even if you don’t hit the max number, the free money still adds up quick! Just think, investing in RESPs sooner than later allows you to watch your investment grow with your little ones.
Are you taking advantage RESPs? How are you investing for your little ones education? Let me know in the comments below!
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Thank you Libro Credit Union for partnering on this post and inviting me come in to learn about RESPs!