How to start saving for your child’s education
With tuition costs on the rise, you may understandably be feeling a bit nervous about the prospect of paying your child’s way through school. However, if you want to give your child the tools that he or she needs to be successful later on in life, then you may want to give your child an opportunity to obtain a college degree in a field of his or her interest. Still, this does not change the fact that schooling is expensive. If you are on a limited income or are having trouble figuring out ways to go about saving for your child’s education, then you may be wondering what steps you can take.
If possible, begin saving for your child’s education as soon as he or she is born. It may seem like something that you do not need to think about until far into the future, but the fact is that by saving gradually, you can end up with a large sum of money over time without necessarily having to put aside hundreds of dollars per month. Even just a few bucks a week can ultimately make a huge difference down the road, as this will give you nearly eighteen years to save. Consider putting your money for your child’s education into a savings account as well so that you can accrue interest on the amounts.
Open an RESP
The RESP is designed to help parents with saving money for their child’s schooling. The RESP will allow the government to match the amount that you have saved to a certain extent with the Canada Education Savings Grant. In this sense, you can receive free financial assistance from the government to help pay for your child’s schooling.
Budget for saving
You can free up a lot of money each month that could go towards your child’s education by simply doing a bit of budgeting. In the long term, is that a $200 per month cable package and brand new car the best way to allocate your finances? Probably not. Cut down on unnecessary expenses and instead begin putting money away for your child’s education. You may be surprised at just how much you may be needlessly spending each month and how little you miss the sources of that spending when they are gone.
Do not do it all
Keep in mind that, these days, more and more parents are expecting their children to pay their own way through at least some of their schooling. Therefore, you should not feel obligated to cover all of your child’s tuition and expenses. Having him or her pitch in will help to keep your child more invested in school while teaching him or her a valuable lesson as well. Still, you can save up a lot by trying some of the above tips.