Education savings motivate children to excel Whitehorse YT
Education savings motivate children to excel
(NC)-It's never too early to start thinking about your child's future and how post-secondary education can help them succeed in life. While it's clear that starting to save early to cover those future tuition fees makes good financial sense, there's a second advantage - investing in your child's education at an early age is also a powerful motivator for them to succeed.
Peter Lewis, Vice President of Canadian Scholarship Trust Foundation - Canada's oldest and largest provider of Registered Education Savings Plans (RESP) - says that many plan beneficiaries say that having an RESP encouraged them to excel.
"I was raised knowing there would always be money for me if I continued with my education after high school. Because of that, there was never a doubt in my mind that I would go on to post-secondary education," said Amy Lynn Stevenson, who benefited from a Canadian Scholarship Trust RESP.
According to Statistics Canada, young Canadians who had savings put aside for their post-secondary education by themselves, their parents or others were more likely to take some post-secondary education (74 per cent compared with 50 per cent). This dramatic difference highlights the importance of putting aside money and how parents' expectations about saving for college, university or trade school have a big impact on whether a child pursues higher education.
An RESP is an education savings plan registered under the Federal Income Tax Act that helps families save for post-secondary education. Income earned on contributions grows in a tax-shelter until a child is ready to attend college, university or trade school. The federal government will also provide a 20 per cent match on RESP contributions through the Canada Education Savings Grant program - this can add up to $500 per year per child or $7,200 over the life of the plan.
Emily Christine Parks attributes her aspiration for higher learning to her Canadian Scholarship Trust RESP. "Without financial support, post-secondary education just wouldn't be an option. It has benefited both my sister and me and made our decisions all the easier when choosing a career, knowing that we could afford post-secondary education."
More information on this topic is available online at www.educateyourchildren.ca or call 1-877-333-7377.