The greatest gift that you can give to the children in your life is the freedom to pursue their dreams. When you are looking at a toddler, you can never be entirely sure what he or she is going to grow into, and that is one of the wonderful and thrilling adventures of life.
If you want to make sure that the child has the chance to make the decisions about who and what he or she wants to be, though, you need to start planning and putting money aside for educational needs early. CEFI offers an RESP Calculator that can help you to get started.
The calculator is very basic and just requires some information about the ages of the children in your life. Based on this, it is able to infer when they are likely to be ready to start pursuing educational goals. That information, combined with projections of future costs, makes it possible to estimate what kind of money is likely to be required in order to cover their educational expenses if they either live at home or move away to another location. These numbers are critical because they should form the basis of all of your planning as you decide how much money to put away and where it should be placed.
Using such a calculator can be intimidating, since the numbers can look quite large, but it gives you the power to make informed decisions. For example, you could then choose to take advantage of the opportunity to open an RESP and be able to watch the money grow with the confidence that none of it will have to be paid out as taxes when the child is ultimately ready to start withdrawing from the account.
It is a huge help for planning in this way, since all of the money in the account is really available rather than having to reserve a portion to send to the government.
Planning ahead is one of the best things that you can do for any child in your life. Having the money available can make the difference between being able to pursue a dream job and having to settle for whatever looks most practical, even if it is not otherwise desirable.
If you want to make sure that the child has the chance to make the decisions about who and what he or she wants to be, though, you need to start planning and putting money aside for educational needs early. CEFI offers an RESP Calculator that can help you to get started.
The calculator is very basic and just requires some information about the ages of the children in your life. Based on this, it is able to infer when they are likely to be ready to start pursuing educational goals. That information, combined with projections of future costs, makes it possible to estimate what kind of money is likely to be required in order to cover their educational expenses if they either live at home or move away to another location. These numbers are critical because they should form the basis of all of your planning as you decide how much money to put away and where it should be placed.
Using such a calculator can be intimidating, since the numbers can look quite large, but it gives you the power to make informed decisions. For example, you could then choose to take advantage of the opportunity to open an RESP and be able to watch the money grow with the confidence that none of it will have to be paid out as taxes when the child is ultimately ready to start withdrawing from the account.
It is a huge help for planning in this way, since all of the money in the account is really available rather than having to reserve a portion to send to the government.
Planning ahead is one of the best things that you can do for any child in your life. Having the money available can make the difference between being able to pursue a dream job and having to settle for whatever looks most practical, even if it is not otherwise desirable.
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