The cost of post secondary education in Canada is quickly rising. By planning for your children’s education early, you will help to minimize debt which may occur upon graduation and give them a great start in their adult life.

RESP:

(Registered Education Savings Plan) A productive way to maximize funds available to children enrolled full time in a post secondary program. The contributions made in RESP’s are able to grow tax deferred until the child makes a withdrawal for educational purposes. When a withdrawal is made it is then taxed, but at a student’s tax rate (which is typically very low). RESP’s are also often eligible for government grants to help your savings go farther.

In Trust Account:

Is an informal trust set up in a financial institution to invest funds on the behalf of a minor. An In trust account can provide a tax efficient way of saving for future education costs as it offers the ability to split the capital gains portion of the returns on the investment with a minor (often in a lower tax bracket) thereby lowering the tax paid by the investors. Unlike RESP’s there are no restrictions on the amount that can be invested and if a child decides not to pursue a post-secondary education, the child is free to use the money for another purpose.

Non Registered Investments:

Give you greater control over how the money you have invested is used. There is no loss on investment growth if the child decides not to pursue post secondary education, and allows for part time study options. There is also no annual limit on contributions.

The cost of post secondary education in Canada is quickly rising. By planning for your children’s education early, you will help to minimize debt which may occur upon graduation and give them a great start in their adult life.

RESP:

(Registered Education Savings Plan) A productive way to maximize funds available to children enrolled full time in a post secondary program. The contributions made in RESP’s are able to grow tax deferred until the child makes a withdrawal for educational purposes. When a withdrawal is made it is then taxed, but at a student’s tax rate (which is typically very low). RESP’s are also often eligible for government grants to help your savings go farther.

In Trust Account:

Is an informal trust set up in a financial institution to invest funds on the behalf of a minor. An In trust account can provide a tax efficient way of saving for future education costs as it offers the ability to split the capital gains portion of the returns on the investment with a minor (often in a lower tax bracket) thereby lowering the tax paid by the investors. Unlike RESP’s there are no restrictions on the amount that can be invested and if a child decides not to pursue a post-secondary education, the child is free to use the money for another purpose.

Non Registered Investments:

Give you greater control over how the money you have invested is used. There is no loss on investment growth if the child decides not to pursue post secondary education, and allows for part time study options. There is also no annual limit on contributions.