Your Money Matters






September 2011 Issue



Back to School - How to Finance Higher Education


A post-secondary education is one of the most important gifts you can provide to a child. Not only can it provide better career opportunities and self-confidence, it can have far reaching economic benefits as well. According to census data, university graduates earn an average of $1 million more over their lifetimes than do high school graduates*.

Given recent trends, however, sending your loved ones to school may be easier said than done. Canadian students can no longer rely on assistance programs to get them through. Tuition fees alone can be exorbitant, and since few families can afford such substantial costs out-of-pocket, you will likely need a sound strategy for paying for your loved ones’ education at some point down the road. That’s why I recommend considering a Registered Education Savings Plan (RESP)

What makes the RESP a smart choice?
An RESP allows family and friends to make a significant contribution towards funding a child’s education by taking advantage of the following benefits:

• Contributions may qualify for the CESG, a government grant that contributes 20 per cent of your annual RESP contribution up to a maximum of $500 per child per year

• The lifetime CESG maximum per child is $7,200

• All contributions made to an RESP, including the CESG, can accumulate and grow tax-free over the life of the plan

• You can invest in a portfolio of growth-oriented investments including equity mutual funds to potentially enhance the value of your contributions

• Lifetime limit contribution of $50,000 per beneficiary

• Parents, Grandparents or Aunts and Uncles can contribute to a plan

If you are looking for a way to invest for your child’s education, we can provide a wide range of mutual funds to help you attain this goal. From Canadian and foreign equities to Managed Solutions, we provide access to a group of highly disciplined investment managers from North America and around the world. You can even set up a pre-authorized chequing plan for as little as $25† per month/per fund.

If you have any questions, or would like to discuss your options, please do give us a call.


Theresa Wever and the Money Concepts Team.

Commissions, trailing commissions, management fee and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.