When my first son was born I was a young, single mom. I valued post-secondary education and went on to put myself through college after my son was born, but I felt I wasn’t in a financial position to save for the future. While money was tight, I now realize a few things about saving for my child’s education I didn’t understand back then.
First of all, I now understand the value of RESP contributions, no matter how small. Back then I felt like a small monthly contribution wasn’t worth it, but I was wrong. Had I started setting aside money when my son was small, the interest and the government contributions would have created a small nest egg that we could have increased over time. I also could have increased my contributions as my income increased.
I realize now that the cost of college and university just keeps increasing, while the bursaries and scholarships seem to become less available. Kids heading off to college and university need to rely on loans more than ever and end up finishing school with a large amount of debt when they are often not even employed yet.
From my own experience, I know that kids often make choices about their education based on the costs involved. I chose a college education because the cost was half that of a university education. Upgrading takes years and often needs to be done while working and raising a family, so it would be better to get it done the way you want in the first place.
When you have a child, everyone tells you to enjoy every moment because time passes so fast. While truer words were never spoken, it’s hard to grasp just what that means until you’ve raised your child to adulthood. Now I truly understand how quickly time passes. You may think that you can take care of it later or wait until you have more money, but before you know it they’re graduating high school and it will be too late to save. If you haven’t started already, now is the time to open an RESP for your child.
Visit http://www.HeritageRESP.com/ to learn about all of the options available through Heritage, and get started investing in your child’s future.