Financial Literacy Tips for Starting to Save for School
Even thinking about saving for your child’s education can be stressful, but ABC Life Literacy Canada has some tips to get you started and keep you calm.
Take a deep breath, and keep in mind:
- Research has shown that just having an educational savings account in their name increases a child’s chances of pursuing post-secondary education. You don’t need a saving plan before you open an RESP.
- It’s ok to have questions. If saving for school was easy, we’d all be good at it! Check in with your financial institution (or, better yet, with a few different ones) to ask questions about what’s going to work best for you and your family.
- Education is an investment in a secure future for your child. Not only will the money you’re saving now grow by the time your child goes to school, but that education will set them up for greater employment chances and higher earnings. Every dollar you save today will have an even bigger impact for them down the road.
Start with the small and the manageable.
- Make sure you have a Social Insurance Number for you and your child. This Government of Canada website can help you out.
- Learn more about what an RESP is, and the extra benefits you can get from opening one, like the Canada Learning Bond.
- Make an appointment with your financial institution to open an RESP. If you’re nervous about this, use SmartSAVER’s tool for getting the process started online. Remember to have yours and your child’s Social Insurance Numbers handy.
- Create a spending plan to reflect on where your money is going every month. Are there ways to rearrange your spending so you could re-route some money into your child’s RESP? We’ve got some ideas for you here.
- In lieu of gifts for your children, ask friends and family to provide RESP contributions.
- Have school-aged kids? Start talking to them about money—including the cost of education, and why it’s important to save for it. Not only does this keep your kids informed and learning, but you can get the bonus motivation of working as a family team to save money for education, instead of feeling like you’re on your own. These activities for parents and kids can get you started.
Happy saving!
Carissa Di Gangi
Program Manager, Community
ABC Life Literacy Canada
