Please join me in welcoming Tradex to the Fishbowl!
Tradex is an Ottawa-based mutual fund company. They can assist with Registered Retirement Savings Plans (RRSP), Registered Retirement Income Funds (RRIF), Tax-Free Savings Plans, investment accounts and life insurance. But their focus today is Registered Education Savings Plans (RESPs) because it’s (a) important and (b) not well understood.
I will let the experts explain it a bit better:
Despite being available since 1998, only about 35% of children between 0 and 17 have received the Canada Education Savings Grant (CESG) of 20%. (Source)
Do you have RESPs for your kids? If not, do you know much about them? I will say this, it’s a great way to save for a child’s post-secondary education.
Time for a reality check: the average yearly tuition cost for an undergraduate degree in Ontario is estimated to be $6,307 in 2011, a 5% increase from 2010. Assuming this rate of increase and without considering the costs of books, course material, food and lodging, this suggests that, at a minimum, a 4-year undergrad degree will cost your child $27,184 by the 2015 graduation year. (Source)
I don’t know about you, but that number freaks me out.
Grab yourself a coffee and watch this video. It might give you a better understanding of why RESPs are so important:
Do you have any questions about RESPs? Leave them in the comments below. Tradex is happy to answer !
