The cost of living continues to add a strain on everyone’s budget, but the Registered Education Savings Plan (RESP) remains an investment that can help you get the higher education you’re aiming for, says an expert.
More than Enough Financial owner, David Van Noppen, told CTV Morning Live Monday the benefits associated with the RESP are better than those you might get with other savings plans.
He says people can open an RESP account for themselves, their kids or grandkids.
“Maybe what you didn’t know is that we think of RESPs specifically about the kids. So, it’s like I’m saving for the kids and that’s because we have a longer period of time to do that, but you can also open an RESP for you, yourself as an adult,” he said.
To open an account, you have to remember that it’s a registered plan, which requires going to an institution that is registered.
He recommends asking your provider or the bank about the grants and the benefits associated with the RESP to maximize your benefits.
“There are some grants, there are extra incentives that the government gives both in Ontario as a provincial government and federally to accelerate your savings. So, if you contribute, there’s some matching going on that you don’t wanna miss out on,” he explained.
The RESP not only covers the costs associated with tuition, but also the costs of books.
You have to have proof that you’re going to post-secondary education to be eligible to sign up for the plan, whether it’s college or university, he says.
The sooner you start saving, the better, Van Noppen added.