Save Money for your Children

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Save Money for your Children

November is Financial Literacy Month #FLM2014. In this post we wanted to raise awareness on the importance of parents setting aside money on a systematic and regular basis for their children’s future. To save money for your children is a noble thing to do. It show’s your detachment from money and your keen interest for the financial future wellbeing of your children. Naturally to save money for your children does not mean that you are supposed to pay their way for the rest of their lives. No. It means to save money for their future post-secondary educational plans. After all, it is still true that with education you empower people to do good things, to earn a livelihood and support oneself and loved ones.

save money for your children

There are certainly diverse set of ways to save money for your children. Perhaps the simplest way would be to just open a savings bank account and every month deposit predetermined amounts into the account and let compound interest work its magic.

The Government of Canada has created special plans just for children and their future.

Registered Education Savings Plan (RESPs).

Here is Canada Revenue Agency’s explanation.

A registered education savings plan (RESP) is a contract between an individual (the subscriber) and a      person or organization (the promoter).

Under the contract, the subscriber names one or more beneficiaries (the future student(s)) and agrees to make contributions for them, and the promoter agrees to pay educational assistance payments (EAPs) to the beneficiaries. For more information, see How an RESP works.

There are two different types of RESP available: family plans and specified plans.

Canada Learning Bond

CRA explains “the Canada Learning Bond offered by the Government of Canada helps parents get a head start in saving for their child’s education after high school.” Find out if your children are ‘ELIGIBLE.

Canada Education Savings Grant (CESG),

which is money that the Government of Canada will add to your child’s savings in a Registered Education Savings Plan (RESP). To learn more about the program click on ‘LINK.

save money for your children

 

Many Canadian banking institutions also support and work with the Government of Canada in providing bank accounts and services towards its programs to help you the parent save money for your children. Visit their web sites to learn more about their services.

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