Education builds the personality of the child. In today's generation the post secondary education plays a significant role in determining the future of the child. The higher costs of post secondary education are becoming a cause of concern to the families from the low and middle income group. The financial situation of the family plays an important role in deciding the affordability of the education for the child. Poor financial background should not stop the child from getting the higher education. A degree from reputed university opens doors for increased employment opportunities and potential for more earnings and career growth.

Parents with poor financial background can take help from the Federal government sponsored education plans that offer financial aids. Help from these plans cover some part of the expenditure but major part remains to be paid by the parents, which is very difficult given the situations of limited income and higher costs of living. This is where the Registered Education Saving Plan, RESP comes into picture.

Understanding the RESP

RESP is an education savings plan that helps parents to invest and save for the future education expenditure of their children. This plan which is approved by the federal government works along with the parents in building the future of the children who will build the nation. Parents can start the RESP plan as soon as the child is born and keep investing till the plan matures. The plan earns returns on the money invested which is tax deferred.

Accumulation

The main advantage of investing with the RESP plans is that the RESP plans are associated with the government sponsored education plans like the Canada Education Savings Grant (CESG), Canada Learning Bond (CLB) and some other plans sponsored by the provincial governments of Alberta, Quebec and Saskatchewan. Usually the grants offered by these plans sum up to 20 % of the annual savings done by the parents to a limit of $500 per child.

Service provider

RESP plans are offered by all the banks and financial institutions across Canada. Starting an RESP plan is very easy. The subscriber of the plan usually the parent, grandparent or the guardian has to provide the Social Insurance Number (SIN), birth certificate and the permanent residency card of the child who will be nominated as the beneficiary. The Heritage Education Funds are the leading service providers of the RESP plans in Canada. They have been building the future of the children for over 50 years helping 400,000 families.

The Heritage RESP plans are available to the parents with different needs. The experienced representatives pool the money contributed by all the subscribers of the plan and invest in a low risk opportunity that earn them a consistent returns which accumulate in the subscriber's account along with the financial aids received from the plans. By the time the beneficiary is ready to pursue the higher education the parents have sufficient funds to afford the cost of post secondary education of their child.

Heritage takes the responsibility of making sure that the parents have enough funds to go ahead with the expenditure of higher education of their children with confidence.