With the price of post secondary education on the rise and scholarships hovering at the same value as when they were young, most parents look forward to their kids going off to college about as much as they would look forward to a trip to the guillotine. With each child, the burden grows until they're sure they'll need online counseling just to cope... and the children are still babies! To ease your mind, we'll give you some tips on how to save for your child's education.
Start Early
This is a basic fact of saving - the earlier you start, the more you save, and not just because you'll have put more money in. Interest also accumulates based on how much is in the account, so interest upon interest equals a good education for your future telecommunications expense management executive. Ideally you'll want to start a college fund as soon as your child is born and start putting away as much as you can afford on a regular basis, perhaps even programming your contribution into your monthly budget.
Choose the Right Account
Not all accounts are created equal. Depending on the career path your child chooses, one may be more helpful than another. Registered Education Savings Plans (RESPs), for example, could not be used to fund your child's tour of Europe with his hardcore punk band. Tax free savings accounts, RESPs, and investment portfolios are all options to consider. Sit down with your bank and discuss your options to make sure you choose the right one for your child.
Encourage Gifts
Kids get more presents than they could ever possibly play with, especially if they come from a large family. To help set your child up for the future and save you from going to Refinancing Toronto to fund your child's college studies, encourage friends and family to occasionally bypass the toy store and put the money in the college fund. Elementary age children will hate this, but babies don't know the difference and teenagers will appreciate it once they realize they are facing the prospect of hefty loans.
Get the Child Involved
Children who are encouraged to take some responsibility for themselves are better equipped for the world. Therefore your child should contribute to his or her own fund. Perhaps the proceeds of their first lemonade stand might be deposited into the fund ,or the money they make mowing the lawns of nearby London, Ontario homes, or part of the paycheck they receive from their summer jobs.
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