Education is an important part of everyone’s life. You as a parent need to think about the education of your kid. These days, the post-secondary education is too much costly in North America and Canada like countries. If you are fairly wealthy, you will be able to invest money in the post-secondary education of your kid. Otherwise, it will create a mess for you. Obviously, it is a common thing that not all kids go onto college or university. However, if they do, then it will be a burden for parents to plan for the finance. Knowledge First Financial is the association, which provides financial plans to help parents.
How to manage with the financial burden?
When your kid has planned to achieve something in his or her life that is beyond your limit, then you will look for some financial security. There are many ways to do this kind of planning. The best way is to use the RESP, which is abbreviated as a Registered Education Savings Plan offered by Knowledge First Financial. It is vigorous for your financial health. If your kid is interested to go for post-secondary education, then it is important to have.
What is an RESP?
It is a government sponsored education program from an agency, named as Canada Customs and Revenue Agency. It is permitted to grow free of tax. When the maturity date comes, money will be paid from the plan, which might be taxed as income for a student. When you want to go for this plan, there are many things, which are important to understand. These plans are regulated by private companies or persons, which are named as promoters. They will collect contributions and make an investment in accordance with the needs. Students can have more plans, but the restriction is strictly per student. It is a kind of scholarship from an agency. Students will be awarded as a scholarship so that they can go ahead in the life and become what they want to.
Essential things to keep in mind
While choosing an RESP plan, you need to understand many things. The most essential thing is that the government will add 20 percent to the first 2000 dollars per calendar year ($400) up to. It includes the year of a student 17th birthday. They have named it Canada Education Savings Grant. It is also important to know that any amounts paid are not involved in the yearly limit for the sake of tax.
Choose the best plan
Of course, you are new to it, the chances you may have many doubts about these plans. You can contact the representative of the association, who will be able to explain each and every aspect. Once you have an RESP, it is also important to manage it. Your RESP is a short, a long or a medium one that depends on your preferences. It is also based on how many years your kid attends the post-secondaryeducation. So, secure your child with the financial plan so that he or she can achieve dream successfully.