bestsavingsplans

 

The cost of post-secondary education continues to rise with each passing day. The cost that stands at 60000 dollars today is likely to increase to 140000 dollars in the next few years for a child that is born today. It is therefore very crucial for parents to start saving up for their children's future education hence the RESP. However, there are certain mistakes that parents keep making. Here are some of the common mistakes parents make on a daily basis with their global resp. You need to avoid getting into the same mistakes if you want to successfully contribute to your child's RESP account.

 

Some parents have made the mistake of setting up the fund and forgetting about it. This is probably one of the most common mistakes, especially for new parents. It is important to set the fund but also keep re-evaluating it in order to keep adding more money into it. It does not matter how little the additions are per month as long as you add something into the account. You need to keep checking if you are on the right track of achieving your goals to save for your child's education. You should make decisions such as whether to pay for everything or just some of the costs.

 

An equally common mistake some parents make is failing to take advantage of the free money from the government. The federal government gives grants for parents who set up the maximum amount of RESP for their children's education fund. Most parents have set up an RESP account for their children but do not make the maximum contribution of 2500 dollars a year. This means that each of their children does not get the extra 500 dollar grant that the federal government awards to each maximum contribution amount. Getting to make this maximum contribution is achievable as long as you are able to organize yourself as a parent. Give yourself a monthly target that goes towards this fund's contribution. By the end of the year, the whole amount will be attained and you will get the free grant from the government.

 

Most parents have taken the registered education savings plan account lightly instead of treating it like an investment account. This probably why some of them have not given it the seriousness it deserves. Parents are likely to save more if they treat the account as an investment that grows.

 

Watch this video at https://www.youtube.com/watch?v=uZ73ZsBkcus and know more about educations.