1. The cost of higher learning is getting higher and higher.
An RESP is a smart way to be proactive and save money for your child’s future education so that when they’re ready to study, you’ll be ready to help pay for it. The earlier you start the better because it gives your investment time to grow. It’s a great way to ensure that by the time your child graduates from high school, you’ll be able to help provide them with the freedom to choose the university or program of their choice.
Some key numbers at a glance:
- It could cost $192,000 to send your child to university by 2042.1
- The tuition fees for undergraduate programs for the 2023/2024 academic year have increased by 2.9 percent to an average of $7,076 across Canada.2
- The total amount of student loans owed to the federal government reached $22.3 billion in 2020. This figure is alarming, but it doesn’t even include provincial and personal loans, lines of credit and education-related credit-card debt. In Canada, the average student loan debt is now $28,000 for a bachelor’s degree and $15,300 for college grads.3
2. An RESP allows your child to collect $7,200 or more in grants from the government
Matching grant programs from the federal government and some provincial governments can add up to 20% or more to savings in RESPs.
3. Many people can pitch in and help out.
Parents, grandparents, other relatives and friends can open an RESP for your child and make contributions to support your child’s future.
4. Less education means less opportunity for success.
A recent Statistics Canada report shows that youth with access to an RESP are more likely to continue their education than those with no RESP. Today’s job market requires degrees and specialized skills acquired through post-secondary education, and it’s only going to get more competitive.4
5. Avoid going into debt.
With the cost of education rising every year, parents often find themselves wondering whether they should be saving or borrowing. The problem with borrowing is that can cost a lot more in the long run and can also become a burden inherited by your child.
There’s no better feeling than knowing you can give your child an education, and we're giving you an opportunity to do just that.
We've collaborated with CST Savings Inc. (CST) to offer you the chance to win 1 of 4 prizes of a $5,000 Registered Education Savings Plan (RESP). That's a grand total of $20,000 in CST RESPs to be won!
Enter the Sweet Dreams contest today, so they can reach for the stars tomorrow.
- www.cst.org/en/about-resps/why-save-resp.
- Statistics Canada September 2023,“Tuition fees for degree programs increase in 2023/2024.
- Macleans.ca, “What to know about student debt,” August 2022.
- Statistics Canada study from July 2020, “Why are Lower-income Parents Less Likely to Open an RESP Account? The Roles of Literacy, Education and Wealth.”