Advantages of Registered Education Savings Plans
Registered education savings plan, or more commonly known as RESP, is something that a lot of people are doing because of the many, many benefits it can provide for their children’s future. So if you want to ensure a good education for your children when they grow up, then you should also do the education savings plan. If you decide to try registered education savings plan, then you will begin to see all the benefits it will give your child in the future; let us now look at some of the benefits that you will obtain.
The biggest benefit to registered education savings plan is of course you will will be able to save your money for your child’s education in the future. There is ‘saving’ in registered education savings plan and this is what they are really all about – so you will be able to ‘save’ for the future of your child’s education. Usually when children grow up and are ready to go to school, most parents will not know where to get the money for school fees and charges. You have no eliminated the stressful feeling of going through what most parents go through if they have not chosen the registered education savings plan.
Another thing that is super beneficial about registered education savings plan is that it is easy to start early because you can put small amounts of money each time. Because there is no minimum to these registered education savings plans, you can put in any amount of money that you are feeling to give – you can put a big amount or a small amount. This will definitely encourage the people to do it because there is no amount required on which they have to place every month. Because not everyone has the same budget that they put in to their registered education savings plans, it is very varied.
Now that you have your savings in the bank, the next thing to do is to pay taxes? Nope, you do not have to pay any taxes once your money is in the bank; this is the last benefit we will look at today. The only time you will have to pay taxes is when you withdraw the money from the bank. These taxes are usually really small because you are dealing with the education of children. Now you do not have to pay more because of heavy taxes because registered education savings plans have really small taxes compared to other things that you get taxed for.
There are many other benefits that registered education savings plan can provide for you and your child. With registered education saving plans your child’s educational future will really be very stable.