Knowledge

5 Important Reasons to Open an RESP Account for Your Child

Most Canadians will have heard of the Registered Education Savings Plan initiative by now. If you have heard about it in passing, but you don’t know everything about it, then you will want to keep reading. Opening an RESP account is a great way to save for your child’s future. Take a look at these five important reasons to open an RESP account at Heritage Education Funds for your child.

1. Your Child Can Get a College Education
You want the absolute best for your child and will do everything in your power to give them a good future. Signing up for an RESP account is the perfect way to help them get a college education. Higher education can be quite costly, and starting out a life of your own isn’t easy. Giving your child savings to use once they come of age will help them to get the education that they need in order to thrive in life.

2. Investment Options Are Flexible
These RESP accounts have very flexible investment options. You will be able to invest through mutual funds, stocks, and even bonds. All of this is adjustable and can be customized depending on your needs. You should take advantage of this and invest in your child’s future, as there is no better use for your money than ensuring the success of your child.

3. Friends and Family Can Help You to Save Up
Your loved ones can contribute to the Registered Education Savings Plan account that you have set up. People who love your child can give them gifts of monetary contributions for birthdays, graduations, and other special occasions. This can help the money in the RESP account to grow swiftly. It’s a really easy process and is set up to be very convenient for you.

4. RESP Savings Allow for Tax-Free Growth
The money that you put in the RESP and the investments that you keep inside of it will not be taxed. You can grow your money without having to worry about losing a portion of it to taxes. This makes putting money into the RESP an even smarter decision. You can grow your savings very quickly through the use of this account.

5. The Canadian Government Will Contribute
The Canadian government will contribute to your child’s RESP every year. This will be a great benefit that you can only take advantage of if you go ahead and create the Heritage RESP account. Certain families with less income will even qualify for additional bonds that will be added to the account. Some provinces even have special grants and other positive contributions to make to RESP accounts, so you can see why it is so beneficial to open one of these for your child as soon as possible.
It just makes sense to open up an RESP account for your child as soon as possible. The government will give you free money that will go towards your child’s future. You can invest your money in many convenient ways without having to worry about taxes. Creating an account like this is simple, and the benefits are numerous, so take the time to look into it further today.  

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