Give the Best Gift Ever this Christmas – Education
My wife recently sent me the text I know is coming every year: “Need gift ideas!!”
I wrote back, “Time.”
I know, I’m kind of a pain to be married to.
The reality, though, is that we – and our kids – are fortunate. We’ve managed to stay employed – busier than ever, actually – throughout the pandemic. And it just feels like our home has a lot of stuff in in already. But ever since our kids were born, we’ve been really lucky to receive a gift every year from their grandparents that we truly appreciate – and it’s a Registered Education Savings Plan (RESP). It’s almost as good as the gift of time – because it’s one less thing for us to worry about. From a “financial geek” perspective, it’s kind of like getting time, because those RESPs have already started earning compound interest – probably 10 years before we would have gotten our acts together enough to start one. And as parents, it’s one less bit of pressure in saving for the future.
So why is all this so timely? Well, just in time for the holidays, we have a new program launching – a revamped version of the Group RESP. On the back end, this is managed by the same pension fund administrator (Canada Life) as our Group RRSP and Group TFSA. So if you take part in those, you’ll already know how to get around the site. It’s a simple online process to sign up – no need to set a meeting to sit down and sign things (at the beginning or every year). They (Canada Life) take care of applying for the federal government grants, so all you have to worry about is contributing! See below for extra information on the Canada Education Savings Grants.
For more information and to apply, click the appropriate link below.
If you're an ATA member (Alberta Teachers) click here
If you're an Alberta School Board Employee (non-teaching staff member) click here
If you are a member of our Capital Group Voluntary Benefit programs click here
Speaking as a parent, this is a gift we love for our kids to receive. And if you asked, you might find the same answer from the parents in your life (Grandparents, Aunts and Uncles and close friends can contribute too.) Check out the information on [our site for more information].
Rick Harcourt, PFA CPC
Manager of Group & Voluntary Benefits
Dad to 2 kids
Why set up an RESP?
The most compelling reason: Canada Education Savings Grant!
RESPs come with government grants. The the Federal Government will match 20% of your contribution, with an annual contribution limit of $2,500. Over the life of the RESP, you can access up to $7,200 in free grants from the Federal Government.
Here are some annual contribution examples:
If the yearly contribution is $500, then the government grant portion would be $100 (20%), giving you a total contribution of $600.
Or if your contribution is $1,000, the Canada Education Savings Grant would be $200, bringing the RESP yearly total to $1,200.
On the upper limit, if your contribution is $2,500 for the year, the grant portion would be $500 with a total of $3,000 in the RESP for the year.