Is Education really FREE in Canada? | Our RESP Mistake!
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- Опубліковано 4 жов 2024
- In Canada, the basic education is free until 16 years of age (18 in some provinces). So as parents we don't have to worry about the education expenses of our kids at the moment. However, higher education is really expensive. So we have to start saving from today to help our kids with their higher education!
RESP is one such tool which allows parents to contribute to their kids education. Also under the Canada Education Savings Grant (CESG), the government matches 20% on the first $2,500 contributed annually to an RESP, to a maximum of $500 per beneficiary per year. The lifetime maximum per beneficiary is $7,200. This shows that the government actively participates in helping parents with upbringing their kids.
Canada Child Benefits (CCB) is a tax-free monthly payment made to eligible families to help with the cost of raising children under 18 years of age. The CCB may include any related provincial and territorial programs.
Since our son will be starting school this year, Sim & I have realized that its high time we should start saving for our kid's Higher Education diligently. With that thought in mind, we decided to see if CCB would be enough to completely or partially offset the Lifetime Contribution Limit of RESP i.e. $50,000 per kid.
In this video, we will be presenting you with lot of calculations which will be helpful to you as well.
Note - We are not Registered RESP providers nor we intend to sell you any product / service through this video. All the experiences we have shared in this video are based on our own research and knowledge. We encourage you to seek advice of your Financial Advisor in case of any queries.
#CanadaChildBenefits2021 #FreeMoney #EducationInCanada
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Bhai thanks 😊 awesome
Please make more such videos
Hi, Sure 😊
Lots of love from Dubai
Hi Pritesh, hope you are doing good!
@@SimSid all good he bhai..hope everything awesome at ur end..very good content and nicely explain.
@@priteshhazare1301 thanks 😊
Continue the good work very informative ...
Thank you, we will!
@@SimSid I have one inquiry plz guide me if possible for u my hubby is in canda on work visa hes going to apply PR.Police clearance letter is mandatory for PR.Hence hes in Canada from past two year...Hecan apply pc from canada aswell.. plz reply waiting eagerly....
@@farhatjabeen323 yes Police Clearance is mandatory for PR Visa!
Nice job di n jiju.😘😘
Hi, Thanks :)
Nicely presented. Could you tell me the pre school expense for a child who is 2 year old. And when will the free education starts?
Pls reply
Hi, the public school starts at 4 years of age! Day Cares and Montessori pre-schools are expensive depending on the area. We did not opt for it due to Covid-19. I hope that helps!
@@SimSid Thanks for the reply
Hi, my son recently got PR and he is 5 years old. Is he eligible for RESP from date of Birth or date of PR issued? Any idea
Hi, you are eligible to make RESP contributions for your kid from the year you moved to Canada.
Hey sid, I submitted my documents on 29th December ... But since than I did not get any mail or text what should I do thanks
Please reply
Hi, that is quite common. I personally know many people who have submitted their documents since May 2020 and yet are awaiting results. I hope that helps!
@@coolmedicoz9125 Please restrict the comments to the topic of the video. I have made separate videos in which I have discussed about this. You can post your comments there.
@@SimSid okkk thanks😊
Yours calculation little poor in that RESP
RESP gives maximum $500 months so if you
Contribute $2500 / year then you get $500
But here government sets limits of $7200 benefits.
So 7200/500= 14.4 years
So every year invest 2500 into resp and get maximum $7200 from government
so invest 2500 till 14 years = returns 7000
And at 15 year invest 1000 = returns 200
So invest only 36000 = maximum return $7200
Rest of 14000 invest into mutual fund.
Hi, I agree with your point but in the video I have mentioned that I will not be considering the $7200 grants from Govt. This is because you have to invest from to get grants from government.
So this way let's assume that you invest 2500$ per year (in mutual funds as you suggested). It will give you better interest as you are keeping your funds invested for a longer time horizon.
Hi Sid, Can you please help me with my 2 queries -
1. I want to contribute in RESP. I am on work permit and having my SIN number, but my daughter is 4 years old and she don't have SIN number. Somewhere I read that child SIN is mandatory for RESP, but minimum child age to apply for her SIN is 12 years. So how can I start RESP.
2. Can you please tell me what is the best way to invest in RESP? means by any bank or app you can suggest?
Hi, Children do not need a SIN unless they will earn money from a job or from an investment in their name. For example, if your child has a Registered Education Savings Plan (RESP), your child might need a SIN. After your child is 1 year old, you can apply for a SIN from Service Canada.
Through RESP you can invest in GIC's, Mutual funds, Segregated Funds, Stocks, etc. Please watch my video on RESP's the link is - ua-cam.com/video/bctE1GZVPaY/v-deo.html
I hope that helps 😊