We asked our partner Credit Canada Debt Solutions how they promote future education savings to their clients. They are a non-profit charity that has been helping people get out of debt since 1966 by providing free credit counselling and debt solutions. They offered up these three tips:
- Saving for future financial goals is an important part of maintaining a strong financial action plan. This includes having an emergency fund, saving for retirement and your children’s education. If you thought tuition costs were high when you were in school, just imagine what it will cost in 10 or 15 years for the next generation.
- There are many RESP options out there so do your research before choosing. Some brokerage firms or investment companies may charge for opening an account so be sure to shop around. SmartSAVER.org is a good place to start as you are not obligated to contribute and there are no enrollment fees.
- Make saving a habit. Include a realistic amount in your monthly budget and start to see the savings grow. If discipline is not your forte, set up a monthly automatic transfer with your bank from your chequing account to your savings accounts/RESP/RRSP or vacation-in-Hawaii account. By building these funds regularly, you’ll see the fruits of your labour as the total steadily increases to reach your goal.
So while saving money may seem like a chore now, consider the benefits of getting a head start on your financial goals. Applying for extra grants and scholarships can pay off too. As the saying goes, “A penny saved, is a penny earned.” Your kids will thank you for it!
By Kerri Barreca from Credit Canada Debt Solutions
