Saving for Education
Whether it is for you, for your children or your grandchildren, saving for education can be done in different ways. Our Advisory team is here to guide you through it.
Preparation is key
Different types of account allow you to save and invest tax-free or even receive government grants. It is important to fully understand how they work to get the most out of their benefits.
Choose your type of account
The type of account to set up to finance studies depends on the person you are saving for.
Registered Education Savings Plans (RESP) allow you to set aside money and grow it tax-free to finance the post-secondary education of your children or grandchildren. Its other advantage is that it allows you to benefit from government subsidies that are added to your contributions. The contribution limit is $50,000 for life, per beneficiary.
Do you contribute to an RRSP? The Lifelong Learning Plan (LLP) allows you to make a tax-free withdrawal from your RRSP to fund your return to school or that of your spouse or partner. Each can withdraw up to a total of $20,000.
The Tax-Free Savings Account (TFSA) can be used to fund your return to school or that of whoever you want. Its great flexibility is one of its main advantages. It also allows you to save tax-free and withdraw money from the account whenever you want without being taxed. The contribution limit varies according to various factors including your age.
Would you like to know how much you will need to save each year to cover the costs of your child's post-secondary education?