Five Strategies to Save for Your Children's Education

September 03, 2018

Two girls getting off school bus

One important financial goal you might have is saving for your children's post-secondary education. But, this is likely not your only financial goal and it is often difficult to prioritize and consider your complete financial picture. Discussing with your financial advisor all of your financial goals will help you work together to develop a strategy that factors in all of your priorities and sets you on a course that can best help you achieve them. Here are five strategies to consider as you plan:

  1. Setup a Registered Education Savings Plan (RESP)
    An RESP is a tax-deferred savings account designed to help you save for post-secondary education. The
    government will match 20% on every dollar of the first $2,500 you save in your child’s RESP each year to
    a maximum of $500/year for each child up to a $7,200 lifetime maximum.
  2. Consider setting up an automatic payment plan
    You can set up an automatic payment plan which systematically withdraws funds from an account to make contributions to your RESP.
  3. Create a budget and stick to it
    Work with your financial advisor to determine a monthly contribution amount you can afford and
    increase it when you can.
  4. Involve your family
    For special occasions like birthdays and holidays, you could encourage grandparents or other family
    members to open an RESP in your child's name or contribute to one that is already set up.
  5. Explore financial assistance options
    A good place to start is the Government of Canada's Resource page at www.canada.ca/en/services/
    finance/educationfunding.html
    where you can explore student loans, grants and scholarship options that
    might be available to you.

By following some of these saving strategies when your children are young, the investments will have more time to grow and you may be in a better position to support your children's post-secondary education when the time comes.

Call your Edward Jones advisor today to discuss how you can help ensure you are preparing for your children's post-secondary education.

Important Information:

Investors should understand the risks involved of owning investments, including interest rate risk, credit risk and market risk. The value of investments fluctuates and investors can lose some or all of their principal. Dividends can be increased, decreased or eliminated at any point without notice. Diversification does not guarantee a profit or protect against loss in declining markets.

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    Registered Education Savings Plan (RESP)

    Save toward your child's or grandchild's education with this tax-deferred savings account.

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    How Much Will Post-Secondary Education Cost?

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