As parents, saving money for your child’s future can be daunting, especially since so many parents are faced with an endless list of expenses. From sports equipment to karate lessons to family vacations and grocery bills, these costs can add up quickly and make saving toward university a challenge.
Although it is normal to feel overwhelmed, setting aside money for your child’s future education is not only important; it can also be achievable. In order to take better charge of your finances, here are some useful ways to get started.
You’d be surprised to know how much money you can save if you forgo that daily cup of coffee out or pack your lunch instead of purchasing it from a restaurant. By simply cutting back on a few of life’s indulgences, you can take the savings and invest them in your child’s future.
Start a Registered Education Savings Plan (RESP)
A RESP is a helpful way to set money aside and grow your hard-earned dollars until your child is ready to use it for their post-secondary education. Through providers like Children’s Education Funds Inc., you can make frequent contributions to an RESP. As part of their service, dealing representatives of Childrens Education Funds reviews one’s financial background and can tailor plans to meet one’s individual needs.
Set up automatic payments
Similar to setting up automatic monthly bill payments, you can set up automatic transfers from your checking account into your savings account. Arranging for savings transfers to coincide with your monthly budget is an easy way to save without noticing anything substantial is missing.
Create a savings goal for retirement
Some experts recommend saving a certain percentage of your income each year for retirement. Some employers might even match your RRSP contributions, further maximizing your savings. Determine how much you’ll need and break that down by decades to make sure you’re hitting your goals over time. Come tax time, you can apply any tax refund from your RRSP contribution toward your child’s RESP.
The bottom line is, the sooner you can start saving for your child’s future, the better off you will be. Remember, the key to saving is patience and making a conscious effort to change your spending habits.