In the modern world it seems that if you want your children to be able to reach all of their career dreams than there are likely going to need to attend a post-secondary program. And unfortunately, if you're a resident of Canada that will mean paying at least a few thousand dollars for those years in school. The average undergraduate student who takes advantage of on campus living and a meal plan can expect to write a check for about $12,000 a year to their school. Financial experts that are helping you set up your fixed income ETFs and manage your money might suggest that you start saving for your kids early with an Education Savings Plan.

Registered Education Savings Plans are offered by most major financial institutions and allows anyone, like parents or grandparents, to make payments in a child's name that will later be put towards their education. They are registered with the Government of Canada and are a tax-free way to start planning ahead. You don't need to know yet whether your child will grow up to want to be a teacher or be headhunted by an executive search Toronto company to work in management on Bay Street. This makes it possible for them to pursue any number of programs after high school.

The only thing you need before approaching a RESP provider is a social insurance number for the child that you will be setting up the account for. Then there are three different plans that you can choose from. A family plan is usually best for those that are investing for their own children or family members. In this plan you need to be directly related to the person that you're setting up the account for or be their legal guardian.

If you're planning to set-up a scholarship for some student to study finance with your company of Canadian mortgage brokers, for example, than you are going to want to go with a group plan. There are several different choices when it comes to picking the right package within this sort of plan and it usually means that your provider will be putting all of the money into low-risk investments. With this, you will be making regular payments to the account and might even need to sign something that promises you will do this. So you need to make sure that you can still manage your mortgage for North York condominiums and this payment.

An individual or specified RESP can be set up for a student of any age and is something that you can even establish for your own future education. This plan requires that the recipient spend at least twelve hours a month in class. So, if you're planning to start your own business and want to take a business course to help you understand employment insurance refunds or want to establish an account for an older child who is planning to go back to school this might be the right choice.