Are you looking for ideas on funding for your child’s college education? With education expenses on a high, every parent is worried about the future of his/her child. The post below offers some easy hacks to help you here.
Create a separate savings account
You definitely have your savings account where you allot your monthly savings. Now, you can’t use that savings for your child’s education as it will help you to meet other expenses. Thus, you should always open a separate account for your child’s education that will be solely dedicated to the stated purpose. Added to your monthly deposits, you should also deposit any extra money you get (say a heavy company bonus) into that savings account.
Utilize gift money
Instead of wasting gift money on mindless expenses, try to utilize it in a fruitful way for your child. Whenever your child gets money in gift, make sure to send it to the savings account meant for his college education. It doesn’t mean you will have to put the entire amount in savings. But make sure to take at least 60-70% of the money for the savings.
Count on RESP
RESP is a popular tax-free savings plan which will be great to fund your child’s education. The Canadian federal government provides 20% grant for RESP contributions which can be up till $2,500 per year.
Make investment in share market
Share market is a highly profitable avenue for excellent ROI over the years, provided you play it right. So, if you know a thing or two about share markets, you may try out investing in share market. However, to ensure truly profitable investments, you should have a clear knowledge about the current state of companies you are investing in. You may check out BNN Bloomberg for updated data on companies whose shares you are planning to buy.