We went to Jared Strokon a Sun Life Financial Advisor for this months money saving tip!
It’s never too late to start saving money, right? Fundamentally, this is a sound theory. After all, having some savings is better than having no savings. But regret over a missed opportunity can be particularly painful, especially when you realize after-the-fact how easily you could have captured a piece of the action.
In August 2016, a lump-sum $1,200 deposit to your child’s RESP (called the BC Training & Education Savings Grant or BCTESG for short) became available to children born 2007 or later, upon their 6th birthday. The window of opportunity closes on the child’s 9th birthday – but an extension was granted to allow families with children born 2007, 2008 and 2009 time to apply for the grant. A year later, the BCTESG became available to children born in 2006 as well.
As of August 14, 2018, the $1,200 grant will no longer be available for children born in 2007, 2008 or 2009. That is, if you have not submitted your application by the deadline, you may need to explain to your child at some point in the future why their education fund is a little smaller than the rest of their friends. Taking compound interest into consideration, this could amount to much more than a $1,200 oversight!
If you have a child in Grade 3, Grade 4 or Grade 5, and have not already applied for the BCTESG, stop reading now, and call your financial advisor. There will be plenty of time after August 14th to read the rest of this article. If you know someone with children in this age group - and want to be a good friend - here is what you need to know:
For children born 2007, 2008 or 2009 (Grade 5, Grade 4 or Grade 3) the deadline for applications is August 14, 2018. • For children born 2006 (Grade 6) the deadline for applications is August 14, 2019.
You do not need to invest any of your own money to qualify for the grant.
The parent (or guardian) and child must be residents of BC to qualify.
If the child does not use the grant for post secondary education, the usual RESP grant repayment rules apply. A full list of details and eligibility criteria (plus information on other RESP grants which are also available) can be found on the Government of Canada website by using the following link:
https://www.canada.ca/en/employment-socialdevelopment/services/student-financialaid/education-savings.html
This article is not a substitute for proper financial planning and advice, and personal situations should be assessed on a case-by-case basis. For more information on saving for your child’s education, protecting your family, and making the most of your money contact jared.strokon@sunlife.com