A post-secondary education can be a tremendous advantage for anyone trying to get ahead in life, but it does not come cheap. According to Statistics Canada, the average undergraduate tuition fees for full-time students in Manitoba range between $3,814 and $4,417, depending on the field of study. In other provinces, they can be as high as $10,000 per year. Source: Tuition fees for degree programs 2018/2019, Statistics Canada, published Sept. 5 2018.
A Registered Education Savings Plan (RESP) is a great solution. A parent (or grandparent, spouse or common law partner) makes after-tax contributions to the plan.
Another great advantage of an RESP is that through the Canada Education Savings Grant (CESG), the federal government provides 20 cents for every contributed dollar, up to a maximum of $500 per year. Families earning below $77,769 can earn an additional 10 cents per dollar up to the first $500 contributed annually, while families earning below $38,832 can earn an additional 20 cents per dollar (again, up to the first $500 contributed annually).
Saving for your child’s education can have a tremendous impact on them. Having a financial cushion like an RESP means your child can focus their attention on their education.
Learn more about RESPs here. Or, visit us in‑branch to open an RESP today.