Higher education is something all parents want for their children (and grandparents for their grandchildren), but how much will it eventually cost you to provide it? If the current trend in rising education costs continue, a four year university degree in Canada could easily cost over $50,000 in just 10 years.
If you have already started saving, good for you. If you have used a Registered Education Savings Plan (RESP), that’s even better. Although contributions to an RESP are not tax-deductible, all income grows tax free until withdrawn from the plan. As an added incentive, the federal government will deposit a Canada Education Savings Grant of an additional 20% of your contribution directly into the RESP for Canadian resident beneficiaries under 18.