Community News

RESP questions???

Sep 05. 08

Many consider planning for post-secondary education to be very important for our children today. Who would disagree?? Over their lifetime, university graduates on average earn $1million more than do those without a post secondary education according to the Association of Universities and Colleges in Canada.

A message to parents and grandparents: Saving 1 loonie or 1 toonie a day in the form of a RESP will lay great ground financially for your child’s post-secondary education… and provide them with the opportunity to earn more than $1million in their lifetime as an adult.

Bulkley Valley Credit Union can offer you a number of investment vehicles for your child’s RESP. Stop by today to learn more.

First introduced in 1998 and then enhanced in 2004, Canada Education Savings Grant is an education grant from the Federal Government of Canada that contributes to the RESP account of a child. CESG is composed of two portions: Basic CESG & Enhanced CESG.

20% Basic CESG: for every $100 contributed to an RESP by you, the government provides a $20 grant called the Canada Education Savings Grant. The CESG can be as much as $500 a year for each child.

Enhanced CESG: starting from 2005, for the first $500 contributed by you each year, the Canadian Government will provide an additional 20% of enhanced CESG to your kid’s RESP plan if your family income is below $36,378 (the amount is updated by Human Resources and Social Development Canada each year based on the rate of inflation); and 10% additional Enhanced CESG is added to the RESP plan if your family income is between $36,378 and $72,756.

With the enhanced CESG, the Canada Education Savings Grant could be $600 each year for low income families. The lifetime maximum of all Canada Education Savings Grant is $7,200 per child.

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