Preparing To Pay the Tuition Fees in College

The cost of higher education in Canada is increasing with every passing year. Today every job in the market requires a qualified candidate who is knowledgeable and certified by a qualified university. Parents cannot afford to make their children miss post secondary education because of their poor financial situation.

The Registered Education Savings Plan is an investment plan that helps parents save for their child's post secondary education. It is a good investment option, when your goal is long term investment. The subscriber of the plan usually the parent or the legal guardian will make contributions to the plan as per their convenience. The subscriber can make regular small investments or occasional big investments. And these investment options can change as your financial situation improves or deteriorates, since they are highly flexible.

Tax aspect:
The money earned by the subscriber from RESP is not taxable. When the money is withdrawn from the plan, the money is taxed in the hands of the beneficiary. Because the beneficiary is a student, the tax charged will be very less and in many cases zero.

Benefits from grants:
To encourage parents saving for the future of their children, the Federal government offers incentives to the beneficiaries associated with the RESP plans. The incentives add up to 20% of your annual contributions to a maximum of $500. These incentives are offered by grant programs like the Canada Education Savings Grant (CESG), the Canada Learning Bond (CLB) and other provincial education savings programs.

EAPs:
The payout made by the RESP provider to the child to finance the education is called the Education Assistance Payouts (EAPs). The beneficiary gets to withdraw the EAPs only when he/she shows the proof of enrolment in a qualified course or a specialized course offered by a reputed college or a university. The EAP comprises of the money invested, returns on the money and financial aid from the other programs. If the child decides to discontinue studies, the money received from the grants has to be repaid.

Right promoter:
The RESPs offered by all the companies across Canada work on the same motto of helping parents save for their child's post secondary education. The terms and benefits offered differ slightly from company to company. The Heritage Education Funds is most experienced in helping parents choose the right plan to build the future of their children.

They have been established in the market for the last 50 years, selling exclusively RESPs. They have the expertise and professionals to take care of subscribers’ money in order to get competitive returns. Heritage RESP offers wide range of investment opportunities to the people by pooling the contributions received from all the subscribers.

Right plan:
When you decide to save for the post secondary education of your child, no time should be wasted. The sooner you start investing with RESP the more money you can save. It is wise to prepare for your child’s future in advance. Parents who do that successfully will have wisely invested in their child’s life.