Post-secondary education can be a tremendous advantage for anyone trying to get ahead in life, but it does not come inexpensively. According to Statistics Canada, average undergraduate tuition fees for full-time students in Manitoba range between $3,814 and $4,417, depending on the field of study. In other provinces, they can be as high as $10,000 per year.
A Registered Education Savings Plan (RESP) is ideal for parents (or grandparents, spouses, or common law partners) to make after-tax contributions to the plan. Another advantage of an RESP is that the federal government, through the Canada Education Savings Grant (CESG), provides 20 cents for every contributed dollar, up to a maximum of $500 per year.
Families earning below $77,769 can also benefit from an additional 10 cents per dollar up to the first $500 contributed annually, while families earning below $38,832 can earn an extra 20 cents per dollar (again, up to the first $500).
If you’re interested in learning more about RESPs, drop by or call your neighbourhood branch today.