Education Plans
The importance of education
Education is a gateway to higher earnings, according to Statistics Canada and the latest census.
- More than 60% of Canadians in the highest earning category – over $100,000 a year – have a university degree.
- In the last three years, average undergraduate tuition fees at Canadian universities rose by 7.3%.
- By the 2009 academic year, an undergraduate at a Canadian university faced tuition fees averaging $4,724 (Source: Statistics Canada, 2009). Fees are likely to continue to rise.
Whether you are hoping for your child to attend a post-secondary institution, or are an adult wishing to return to school yourself, you’ll need a savings plan to make that dream a reality.
An RESP is a special savings account that grows tax-free until you or your child is ready for post-secondary education, whether that's university, college or a vocational institute.
Money put towards an RESP is not tax-deductible like an RRSP contribution. However, there are benefits:
- Money grows tax free until it is needed.
- Students pay little or no tax on the money when itπs withdrawn to pay for education.
- The federal government will contribute up to $500 per year per child, to a lifetime maximum of $7,200 per child. That's like getting free money!
- An RESP can be opened for one child or several children at once.
- Anyone can contribute to an RESP.
To discuss the options that work best for you, contact an Affinity Credit Union Representative by e-mail, or call us at 934-4000 or toll-free at 1-866-8MEMBER (863-6237).