One of the best ways to save for education is by getting a heritage resp reachs Registered Education Savings Plan. This allows parents to tuck away money for when their children eventually set off for university. Here are four different ways to benefit.
1. Grants in Canada
Grants are a great way to get help paying for university, especially because it’s financial assistance that doesn’t have to be paid back. The Canada Education Savings Grant takes care of up to 20% of the first $2500 contributed to a savings plan each year. The most that a family can receive from this grant over the course of a lifetime is $7200. Still, this makes a big difference when pursuing university options. Another grant is called Additional CESG and follows in the footsteps of the Canada Education Savings Grant. It adds an extra 10% to 20% to the grant amount. The exact amounts of financial aid from these grants depends upon a family’s particular income.
2. Province-Specific Options
While there are programs and assistance available throughout the country, there are some options that are specific to certain provinces. One example is Alberta’s Centennial Education Savings Grant, which is open to children born on or after January 1, 2005. This grant supplies $500 to an established education savings account and $100 each year as long as the applicant is still eligible. Québec has a similar program, although it amounts to a maximum of $250. These types of programs target parents of young children to save up early for a university education. The goal is to encourage families to pursue a higher form of education after high school even if they feel that they can’t afford it using best provider as heritage resp.
3. Income Assistance
Not everyone knows that there are nationwide assistance programs for families that meet the minimum qualifications. For example, the Canada Learning Bond was put in place to aid families who receive other government benefits. There are a couple of requirements that a family must meet in order to apply for the Canada Learning Bond. They must have a child (or children) born on or after January 1, 2004 and they must be part of the National Child Benefit. If they meet those qualifications, a family can get an extra $500 bond when they sign up for a Registered Education Savings Plan from heritage resp. Moreover, they will get an additional $100 every year if they still meet the requirements.
4. Tips for Current Students
Some parents might be desperate for help even if their kids are already in school. All hope is not lost; there are ways that university students and their parents can work together to save money. First of all, sitting down to go over all options is a good starting point. It’s an opportunity to see where the student’s grades are and how he or she is balancing school and a social life. If there is room in the schedule, it might be worth considering an on-campus job to help with finances. This type of employment does not need to be heavy on the working hours. In fact, students can spend a few hours a week working at the library, in the dining hall, or as a tutor. Any bit of extra income is a huge plus!