When should I start saving for my baby's future post-secondary education?

There is no time like the present! As a parent or a concerned adult you are going to have to consider your families educational financial situation. By starting a education savings plan early it allows you the opportunity to plan ahead, to determine what sort of education you want for your child and the type of education savings plan you are going to need to meet that education.

A Registered Education Savings Plan (RESP) is one of the best ways to ensure that you make a difference in your child's future!

Saving for the future has never been easier, making regular contributions to a Heritage Education Funds RESP will assist you in obtaining your families education funding needs, the benefits are untold; grants, compounding interest and tax sheltering.

FREE MONEY FROM THE GOVERNMENT

You have the benefit to obtain the Canada Education Savings Grant.
By opening a Registered Education Savings Plan (RESP) with Heritage qualifies for the Canada Education Savings Grant. The government will contribute 20% on the first $2,000 of annual contributions made to an RESP for children up to the age of 18. That translates into $400 per year or $7,200 lifetime of free money available for your child's education.

COMPOUND INTEREST

By starting early you can benefit from the effects of compounding interest. Compounding interest is a good example of how a little goes a long way. If you start out with $1000 and it is compounded annually at 10%, you'll have $1100 by the end of the year. The second year you add $1000 to the account and still earn 10 %, but you earn it on $2100, returning $2310 at the end of the year (doubling the interest earned in the first year). It doesn't seem like much, but over the long term the effects of compounding interest really add up.

TAX SHELTERED GROWTH

Another advantage of an RESP, similar to an RRSP, is that the contributions grow tax-sheltered. It is only when the proceeds are withdrawn is there any tax implications, and in the case of an RESP the tax burden is on the student, which typically ends up paying no taxes because of their lower marginal tax rate.

There is no time like the present to start making a difference in your child's future. It does not matter who you are; the Prime Minister of Canada, a famous movie star or an employee of a company, every parent wants more for their child then what they had, and a future education can help provide that opportunity. Start a RESP with Heritage Education Funds today!