Your Financial Goals
Education Funding
 For 2019, the projected costs of a 4-year undergraduate degree are estimated to be $74,000. A 3-year college diploma is similarly estimated to be $45,000*. These numbers are daunting for most parents, especially if you have more than one child. By starting early, most parents
- even those on the tightest budgets today - will be able to fund a substantial part of their children’s education. This is possible due to the many investment options available for education savings.
The Registered Education Savings Plan (RESP), is an excellent opportunity to save for your child’s or grandchild’s post-secondary education. It provides tax deferred growth with typically nominal taxation in the hands of the student. This savings option gets the government of Canada pitching in to help you save .
Canadian Education Savings Grants
On the first $2,500 of annual RESP contributions made for each child under 18, the government will contribute an extra 20 per cent (up to $500 maximum) directly to the RESP, up to a lifetime maximum of $7,200 per child. If you can’t take advantage of the full grant in one year, you can carry it forward to future years to a maximum of $1,000 per year until the end of the year in which the child turns 17. The CESG is not included in
an individual’s annual or lifetime contribution limits and under cetain conditions may be enhanced.
Lifelong Learning Plan
For your own or a spouse’s education savings, the RRSP Lifelong Learning Plan (LLP)
enables you to draw $10,000 per year from your RRSP to put towards your education. Similar to the Home Buyers Plan, this option allows you to benefit from tax savings while funding this major expense.
Tax Free Savings Account
The TFSA provides an excellent way to shelter your education savings from taxation. The TFSA provides a high degree of flexibility in investment strategies while providing you with very substantial tax savings.
TFSA |
