How much will your
child's education cost?
Ask your credit union about starting an RESP.
In a recent newspaper article it was reported that in less than 20 years
it could cost as much as $125,000 to send your child to university for
four years*. If you have young children or grandchildren, it's a good
idea to start saving for their post-secondary education now. Why not
open a Registered Education Savings Plan (RESP) at your credit union?
Tax-free savings
An RESP is a tax-deferred investment that allows you to put money away
for your child's education. While the contributions are not tax deductible,
no taxes are paid on the income in the plan until the child withdraws
money to pay for their tuition. Since most students have low income,
little or no tax is paid.
Government Grant
With an RESP you can also take advantage of a government grant. For
each $2,000 contributed annually, the Federal Government will generally
pay 20% or up to a maximum of $400 per year for each child up to the
age of 17.
Plus, you'll enjoy:
- Tax sheltered investment income that grows
tax-free until it is withdrawn
- Affordable! You can start investing with
only $50 per month, then for as little as $25 monthly
- Flexible savings options! Choose from daily
interest savings, term deposits and mutual funds
- No administration fees
Start saving today!
The sooner you begin, the more time your child's investment will have
to grow.
*The National Post, November 14, 2002
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