A postsecondary education can be a tremendous advantage for anyone trying to get ahead in life, but it does not come cheap. According to Statistics Canada, the average undergraduate tuition fees for full-time students in Manitoba are an average of $4,913, depending on the field of study. In Canada, annual fees are an average of $6,580. Source: Tuition fees for degree programs 2020/2021, Statistics Canada, published Oct. 21 2020.
A Registered Education Savings Plan (RESP) is a great solution. A parent (or grandparent, spouse or common law partner) makes after-tax contributions to the plan.
Another great advantage of an RESP is that through the Canada Education Savings Grant (CESG), the federal government provides 20 cents for every contributed dollar, up to a maximum of $500 per year, regardless of family income. In addition, families can receive an additional amount of CESG based on income level. To learn more about income adjustments, visit the Government of Canada CESG website.
Saving for your child’s education can have a tremendous impact on them. Having a financial cushion like an RESP means your child can focus their attention on their education.