• Mission
  • Contact Us
  • Privacy Policy
  • Subscribe
  • Terms of Service
Conscious Life News
5-day Holosync Challenge
  • Home
  • Conscious Living
    • Activism
    • Animals and Pets
    • Conscious Evolution
    • Conscious Parenting
    • Happiness & Humor
    • Inspirational
    • Manifestation / LOA
    • Meditation
    • Peace & Human Rights
    • Relationships & Sex
    • Thrive
  • Economy
    • Business
    • Education
    • Loans and Frugal Living
    • Investing and Insurance
  • Environ.
    • Climate Change
    • Eco-Friendly
    • Farming & Gardening
    • Environmental Hazards
    • Nature & Wildlife
    • Preparedness
  • Govt.
    • Agencies & Systems
    • The Fed & Banking Cartel
    • Censorship
    • Govt. Corruption
    • Internet Control
    • Military Industrial Complex
    • Policies
    • Politics
    • Govt. Surveillance
    • Whistleblower
  • Health
    • Alternative Health Care
    • Big Pharma, CDC & FDA
    • COVID-19 Vaccine
    • Diet, Weight Loss, Obesity
    • Exercise and Fitness
    • Food, Drink & Nutrition
    • Healing & Natural Remedies
    • Herbs, Seeds & Spices
    • Human Energy Systems
    • Longevity & Life Extension
    • Mind-Body Connection
    • Pet and Animal Health
    • Prevention
    • Skin & Hair Care
  • Horoscopes
  • Media
    • Alternative Media
    • Books
    • Art and Music
    • Corporate Controlled Media
    • Films & TV
    • Internet
    • Social Media
  • Reality’s Edge
    • Afterlife & Past Lives
    • Ascension
    • Astrology & Numerology
    • Channeling & Readings
    • Dreams, ESP & Remote Viewing
    • Dying, NDE, & OBE
    • ETs, UFOs & Crop Circles
    • Mandela Effect
    • Mysteries
    • Predictions & Prophecies
    • Quantum Physics
    • Reality Shifts & Timelines
    • Spirituality and Religion
    • Angels & Spirits
  • Sci-Tech
    • Archaeology
    • Earth & Space
    • Futurism & Inspiring Inventions
    • Medical Advances & Procedures
    • Nature
    • Psychology-Psychiatry
    • Science
    • Technology
No Result
View All Result
  • Home
  • Conscious Living
    • Activism
    • Animals and Pets
    • Conscious Evolution
    • Conscious Parenting
    • Happiness & Humor
    • Inspirational
    • Manifestation / LOA
    • Meditation
    • Peace & Human Rights
    • Relationships & Sex
    • Thrive
  • Economy
    • Business
    • Education
    • Loans and Frugal Living
    • Investing and Insurance
  • Environ.
    • Climate Change
    • Eco-Friendly
    • Farming & Gardening
    • Environmental Hazards
    • Nature & Wildlife
    • Preparedness
  • Govt.
    • Agencies & Systems
    • The Fed & Banking Cartel
    • Censorship
    • Govt. Corruption
    • Internet Control
    • Military Industrial Complex
    • Policies
    • Politics
    • Govt. Surveillance
    • Whistleblower
  • Health
    • Alternative Health Care
    • Big Pharma, CDC & FDA
    • COVID-19 Vaccine
    • Diet, Weight Loss, Obesity
    • Exercise and Fitness
    • Food, Drink & Nutrition
    • Healing & Natural Remedies
    • Herbs, Seeds & Spices
    • Human Energy Systems
    • Longevity & Life Extension
    • Mind-Body Connection
    • Pet and Animal Health
    • Prevention
    • Skin & Hair Care
  • Horoscopes
  • Media
    • Alternative Media
    • Books
    • Art and Music
    • Corporate Controlled Media
    • Films & TV
    • Internet
    • Social Media
  • Reality’s Edge
    • Afterlife & Past Lives
    • Ascension
    • Astrology & Numerology
    • Channeling & Readings
    • Dreams, ESP & Remote Viewing
    • Dying, NDE, & OBE
    • ETs, UFOs & Crop Circles
    • Mandela Effect
    • Mysteries
    • Predictions & Prophecies
    • Quantum Physics
    • Reality Shifts & Timelines
    • Spirituality and Religion
    • Angels & Spirits
  • Sci-Tech
    • Archaeology
    • Earth & Space
    • Futurism & Inspiring Inventions
    • Medical Advances & Procedures
    • Nature
    • Psychology-Psychiatry
    • Science
    • Technology
No Result
View All Result
Conscious Life News
No Result
View All Result
Home Stuff

Tips & Tricks: How To Get More Money Out of Your RESP

by clnews
February 13, 2020
in Stuff
Reading Time: 3 mins read
0 0
A A
0
1
SHARES
404
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp
Print Friendly, PDF & Email

The cost of post-secondary education in Canada has been rising steadily for the past few years, including tuition fees and housing costs. The tuition fees alone rose by 40 percent over the past decade, necessitating the need to maximize savings of education funds.

It’s no doubt that most Canadian parents save money for their children’s post-secondary education in registered education savings plans (RESPs). However, some of them don’t know how to maximize the benefits of these plans. In this article, we explore the tips to help you take full advantage of RESPs.

6 Ways to Maximize Your Savings in RESPs

One of the best ways to maximize RESP benefits is by selecting a reputable provider like Knowledge First Financial. You can click the link knowledgefirstfinancialreviews.ca to get more info about the company. Here are the other ways to increase savings in your RESP.

1. Maximize the Government Grants

So far, you may probably know the basics of RESPs, including the government grants. It contributes 20 percent of your contribution as Canada Education Savings Grant (CESG) up to CA$2,500 per year. In other words, your annual grant entitlement is CA$500.

To take full advantage of the CESG, you need to contribute at least CA$2,500 every year until when your child turns 17. You’ll be getting the $500 grant each year. However, the maximum amount of grants you can receive in a lifetime is CA$7,200.

2. Carry Forward the Unused Grant Entitlement

If you fail to contribute the $2,500 to get the $500 grant in a year, you can carry forward the unclaimed grant for use in years to come. That makes it easier to save whatever you can afford and increase the savings amount as your income increases.

However, it may take quite longer to get back on track since the maximum grant payment you can receive in a year is $1000. But if you start saving early, as soon as you get a kid, you can easily get the maximum CESG contribution of CA$7,200.

3. Save up to the Maximum Contribution Limit

The maximum lifetime contribution limit of RESPs is CA$50,000 per beneficiary. While you need only CA$36,000 to get the maximum CESG of $7,200, you can save up to the $50,000 limit to maximize tax-benefits and the compounding growth of investments.

Since education costs are rising every year, you should save as much money as possible without over-contributing. If you contribute more than $50,000 in a lifetime, the government will deduct one percent of the excess amount as a penalty every month.

4. Withdraw Your RESP Money Tax-Effectively

You can structure your withdrawals to reduce taxes. When your children enroll in a post-secondary institution, they can withdraw the cash as Educational Assistance Payments (EAPs). The EAPs are usually taxable but at a low rate because students have no income.

Since the withdrawals of contributions are non-taxable, you can effectively spread them out to pay no tax. Withdraw from your contributions as tax-free post-secondary education payments, leaving the grants and interests gained in the account.

5. Apply for Canada Learning Bond (CLB)

Unlike CESG, the Canada Learning Bond doesn’t require you to make contributions to be eligible. It’s a ‘free money’ that the government adds to RESP beneficiaries coming from low-income families. It should finance only educational expenses after high school.

The government contributes up to CA$2,000 to eligible RESP beneficiaries. That includes the first payment of $500 for eligibility and an additional amount of $100 every year if the child continues to qualify for RESP until they turn 15.

6. Withdraw All Money before End of Post-Secondary Education

The primary objective of RESP is to finance your child's post-secondary education. But if some money remains in the account after completing higher education, the government will take back the remaining grants and allow you to withdraw contributions only.

To avoid such complexities, you can first withdraw all the grants and interests earned as the government applies strict measures against them if your child completes education. If you have other kids, you can transfer the remaining amount into their RESP accounts.

Final Words

Registered Education Savings Plans can be much helpful if you save a significant amount of money. To maximize your savings, you need to implement all the useful tips mentioned above. The best thing to do is to start saving early as soon as you get a child.

You should choose the right amount of money you can afford to contribute consistently to take full advantage of the government grants. The best way to do that is by automating contributions. If you’re struggling to make payments, you can ask friends and relatives to help you contribute towards your child’s RESP account.

Tags: how maximize savings in RESPRESP tips
ShareTweetSend
Previous Post

Chiropractic Treatment Assures Long-Term Pain Free Life

Next Post

Why Your Partner Is Mum About Herpes

Related Posts

Stuff

Conscious Resolutions for the New Year

February 8, 2022
Stuff

Facts About Online Casinos In Finland

February 8, 2022
Stuff

How To Get Tested At Home Using A PCR Test in Sheffield?

February 7, 2022
Stuff

4 Simple Tips To Bind Documents Perfectly Every Time

February 7, 2022
Stuff

When To Move From Dating To Being In A Relationship?

January 31, 2022
Stuff

Air Freight Forwarding: Mistakes You Should Avoid

January 31, 2022
Next Post

Why Your Partner Is Mum About Herpes

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Conscious Life News

The mission of Conscious Life News is to be a global leader in the consciousness-raising of the planet.

Follow Us

Browse by Category

  • Activism
  • Afterlife & Past Lives
  • Agencies & Systems
  • Alternative Health Care
  • Alternative Media
  • Angels & Spirits
  • Animals and Pets
  • Archaeology
  • Art and Music
  • Artificial Intelligence
  • Ascension
  • Astrology & Numerology
  • Astrology Overview
  • Big Pharma, CDC, FDA & NIH
  • Books
  • Business
  • Careers
  • Censorship
  • Channeling & Readings
  • Climate Change
  • Conscious Evolution
  • Conscious Living
  • Conscious Parenting
  • Corporate Controlled Media
  • COVID-19 Vaccine
  • Daily
  • Diet, Weight Loss, Obesity
  • Dreams, ESP & Remote Viewing
  • Dying, NDE, & OBE
  • Earth & Space
  • Eco-Friendly
  • Economy
  • Education
  • Environment
  • Environmental Hazards
  • ETs, UFOs & Crop Circles
  • Exercise and Fitness
  • Farming & Gardening
  • Featured
  • Federal Law
  • Films & TV
  • Food, Drink & Nutrition
  • Futurism & Inspiring Inventions
  • Government
  • Govt Censorship
  • Govt. Corruption
  • Govt. Surveillance
  • Happiness & Humor
  • Healing & Natural Remedies
  • Health
  • Herbs, Seeds & Spices
  • Home Maintenance, Repairs & Improvement
  • Horoscopes
  • Human Energy Systems
  • Inspirational
  • Internet
  • Internet Control
  • Investing and Insurance
  • Laws and Lawyers
  • Lifestyle and Fashion
  • Loans and Frugal Living
  • Longevity & Life Extension
  • Mandela Effect
  • Manifestation / LOA
  • Maya / Matrix / Virtual Reality
  • Media & Arts
  • Medical Advances & Procedures
  • Meditation
  • Military Industrial Complex
  • Mind-Body Connection
  • Monthly
  • Mysteries
  • Nature
  • Nature & Wildlife
  • News Flash
  • Peace & Human Rights
  • Pet and Animal Health
  • Policies
  • Politics
  • Predictions & Prophecies
  • Preparedness
  • Prevention
  • Psychology-Psychiatry
  • Quantum Physics
  • Reality Shifts & Timelines
  • Reality's Edge
  • Relationships & Sex
  • Sci-Tech
  • Science
  • Skin & Hair Care
  • Social Media
  • Spirituality and Religion
  • Stuff
  • Technology
  • The Fed & Banking Cartel
  • Thrive
  • Uncategorized
  • Weekly
  • Whistleblower
  • World

Recent News

Scorpio Full Moon Deep Dive Video + Zodiac Forecasts All Signs

Scorpio Full Moon Deep Dive Video + Zodiac Forecasts All Signs

May 11, 2025
Weekly Astrology Video WC 12th May 2025 + All Signs…

Weekly Astrology Video WC 12th May 2025 + All Signs…

May 11, 2025

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result

© 2023 ConsciousLifeNews.com - Premium WordPress news & magazine theme by Jegtheme.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.