Author Topic: What is everyone's opinion of RESPs?  (Read 1188 times)

Joseppi

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What is everyone's opinion of RESPs?
« on: December 21, 2016, 10:24:51 AM »
Hi everyone and Happy Holidays!

I'm reading up on RESPs and trying to decide whether to open one for my daughter using her child tax benefit.

I understand the benefits, but I'm just curious what other folks have to say about this, especially if the child never ends up going to college etc.

What are your thoughts?

Thanks in advance.

RichMoose

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Re: What is everyone's opinion of RESPs?
« Reply #1 on: December 21, 2016, 11:53:42 AM »
I think Individual RESPs are great! I wouldn't worry too much about your daughter not going to college. RESP money can be used for university, college, trade school, and pretty much any other vocational school that is certified by your education ministry. I would be willing to bet that most people would spend money on at least some form of higher education.

Worst case scenario you fold it into your RRSP and pay the government CESG back.

The only real opinion I have from a financial perspective is that your kid comes after you. In other words, make sure you are saving and meeting your own financial goals before contributing to an RESP. I say this as someone who had to pay their own way through university as my parents didn't provide any financial assistance to me. It was doable working a part-time job, watching my expenses, winning a few achievement scholarships, and working full time in the summer. I didn't ever go into debt and I didn't get financial help from the government either because my parents made too much money.

powersuitrecall

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Re: What is everyone's opinion of RESPs?
« Reply #2 on: December 21, 2016, 12:33:09 PM »
I think Individual RESPs are great! I wouldn't worry too much about your daughter not going to college. RESP money can be used for university, college, trade school, and pretty much any other vocational school that is certified by your education ministry. I would be willing to bet that most people would spend money on at least some form of higher education.

Worst case scenario you fold it into your RRSP and pay the government CESG back.

The only real opinion I have from a financial perspective is that your kid comes after you. In other words, make sure you are saving and meeting your own financial goals before contributing to an RESP. I say this as someone who had to pay their own way through university as my parents didn't provide any financial assistance to me. It was doable working a part-time job, watching my expenses, winning a few achievement scholarships, and working full time in the summer. I didn't ever go into debt and I didn't get financial help from the government either because my parents made too much money.

Agreed!

The 20% grant money is nothing to sneeze at.  We started making the minimum yearly contributions (to get the maximum grant) the year each of our kids were born.  We'll contribute like this until the grant runs out and then let it sit.  A good deal.

joonifloofeefloo

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Re: What is everyone's opinion of RESPs?
« Reply #3 on: December 23, 2016, 05:23:47 PM »
+1 to all of the above (both posts).

Even when my income is extremely low, and even though I don't care if my kid goes to uni, I make sure to max out the contribution every year :)