In Canada, high education also known as the post-secondary is far away from being cheap. Nevertheless, the Canadian federal government is giving the parents a little bit of money to fund their children’s education.
According to the new Registered Education Savings Plan also known as the RESP, if the parents come up with $2,000, then Ottawa guarantees that they will provide you with a minimum of $500. Nevertheless, even if the Canadian parents are having a little help from the federal government, only 41 percent of the Canadian parents are taking advantage of the scheme.
Credit unions, banks as well as significant other financial institutions will be able to set up an account for the parents. However Planswell’s CEO, Eric Arnold said that getting the new plan to start feels like a lot of hassle from the parents, as most of them did not want to know about the program in the first place.
Since their inception, Registered Education Savings Plan is conventionally expensive, and at the same time, they are time-consuming, according to the statement that Arnold provided to Yahoo Finance in Canada. Given that there are a lot of educational institutions who are currently profiting from the high-fee mutual funds also known as the illiquid group with new investment plans, it is extremely expensive for the clients to go through the procedure.
According to some of the significant Fintech startups such as Planswell, the parents can immediately get into the plan or the programme in a matter of minutes. The company came up with a national study which said that there are untapped RESPs all over the country.
By the looks of it, the families with low income can also qualify for the Canada Learning Bond. With the help of the Canada Learning Bond, the parents are entitled to get an additional amount of $2000 to their RESP fund given that they do not contribute their share of the money.
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