The progress of a nation depends on the younger generation who contribute to the economy. If the youngsters are not skilled enough to enter the workforce, then there is no future both for the youngster and the nation. Specialized skills, understanding and knowledge are gained through college education. Over the past couple of decades higher education in the nation has become shockingly expensive. The thought of paying for the higher education of their children is scaring the parents.

Understanding the plan

The Registered Education savings plans, RESP comes as a relief to the struggling parents. RESP plans are government approved and the returns earned on the money invested are tax sheltered until it is withdrawn. This plan can be started by anyone who is a relative or a friend of the child apart from the parents and the grandparents.

How to invest

The Registered Education Savings Plan are offered by all the financial institutions including banks, credit unions, certified financial planners etc. The parents can contribute in the plan as much as they can with a lifetime limit of $50,000. Parents can opt to pay once a month or annually or once every five years or ten years. Parents can choose to invest the whole $50,000 at one go. The plan does not make the parents contribute a specified amount. Parents can pay at their own will.

Other benefits of RESP plan

RESP is associated with many of the federal government sponsored education grants like the Canada Education Savings Grant (CESG) Canada Learning Bond (CLB) and other grants sponsored by the provincial governments of Alberta, Quebec and Saskatchewan. These grants pay an amount of $500 per child per year to a life time limit of $7,200. These grants stop paying the aid once the child turns 17 years of age.

How to start a plan

To start a RESP, the subscriber and the beneficiary both has to be a Canadian citizen or a legal resident. The Social Insurance Number (SIN) of both the parties should be provided along with the birth certificate and the permanent residency card of the child. And most importantly a good service provider is required.

The good service provider

Heritage Education Funds has been a good and successful service provider of RESP since 1965. Their plans are highly flexible and assure great returns to the parents. The expert staffs at Heritage guide the parents in the right direction to choose the right plan.

Heritage RESP plans come in mainly two different types. The individual plan and the family plan. The individual plan is designed for the parents who plan to save for their only child. The subscriber of the plan need not be related to the beneficiary in this plan. It can be a friend or a relative. The subscriber can open this plan for himself/herself. The subscriber can change the beneficiary of the plan at any time during the period the plan is active.

The family plan is helpful for the parents who are planning to invest for their multiple children. The beneficiaries have to be related to the subscribers in this plan either by birth or by adoption. The contributed amount is split among the siblings with the eldest one getting the maximum share.

The Heritage plans are a big relief to the parents who are worried about the cost of their children's higher education.