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Kids R' Us

Education Planning

The soaring cost of funding your child’s education is becoming a bigger priority for many Canadians. Considering funding cut-backs at the Federal & Provincial levels, many post secondary institutions have no alternative but to increase tuition costs to meet their operating budget requirements.

In order for our children to remain competitive in the domestic and global job market, a higher level of education is a necessity.

The following are the most common types of plans available to fund your child’s education;

Effective January 1, 2005, the Government introduced some key incentives to the RESP program with the introduction of the CESG (Children’s Education Savings Grant). This grant will add as much as $500.00 per child to the plan each year. For the family with a net income of less than $35,595. (indexed annually) additional CESG funds are available. The amount of 40% CESG (20% Basic and 20% Additional) will be awarded to the first $500.00 in contributions per beneficiary, per year.

For the family with a net income between $35,595. and $71,190. (indexed annually) additional CESG funds are available. The amount of 30% CESG (20% Basic and 10% Additional) will be awarded to the first $500.00 in contributions per beneficiary, per year. At the same time the government introduced a number of new provisions enhancing the beneficiary designation rules and conversion options when the child does pursue a secondary education.

The tax implications of these plans can have varying effects depending on your specific situation.

To find out which plan is best suited for your child's future education, contact Rick Schilling.

E.&O.E.