It’s a new calendar year, so for those of us with children, we once again have the full yearly contribution limit available for our children’s RESP’s. So if you’re not making routine monthly contributions, now’s as good a time as any to drop the $5000 into the little one’s RESP’s. That’ll give the contribution a full year to grow and gets you your $1000 contribution from the government faster as well.
RESP’s are outside of the field I provide advice on, so I actually contacted Mike Holman of Money Smarts Blog to confirm that the contribution limits were by calendar year and that I could make the full contribution in January. Mike’s the author of The RESP book. This is a book that every parent should read. It explains RESP’s in clear easy to understand language and steps you through what you need to know to set one up. And if you haven’t yet started an RESP, now is the time – it’s an easy $1000 per year towards schooling costs that the government will give you every single year!
We just reviewed the RESP’s we have for our children and just because we make regular contributions to it we expect to have enough to entirely pay for our youngest children’s university education (we started a bit late for our eldest to fund their entire education). We know that when they head off to university that we won’t have to cover much of anything in the way of costs – it’s already accumulated and in the RESP.