Getting the kids ready to go back to school can put a real strain on the piggy bank. New shoes, new books, new this and new that -- it's easy to forget about the long-term financial costs of your children's education, particularly if you hope to send them to university. However, it's worth taking a time-out and looking into what you can do to save for your kid's future -- especially since you could be eligible for free money from the government.
According to a report in the Globe and Mail
, many parents aren't aware they qualify for financial support if they open a Registered Education Savings Plan
to help pay for their child's university, college, trade school education or apprenticeship. The article is based on findings by SEDI
(Social and Enterprise Development Innovations) that low-income families, in general, have a lower level of financial literacy and therefore don't realize what's available to them. The findings are supported by statistics that show that higher-income families are more likely to invest in an RESP to save for their kids' education.
So what is an RESP? And who's eligible for government help?