(NC)-It is no surprise that putting money aside for a child’s post-secondary education helps prepare parents for the rising cost of tuition and related expenses. But parents will be pleased to learn that investing in their child’s education at an early age is also a motivator for them to excel.

John Kearns, president and CEO of Canadian Scholarship Trust Foundation (C.S.T.) – Canada’s oldest and largest provider of Registered Education Savings Plans (RESP) – says that several C.S.T. Plan beneficiaries have testified to the fact that having an RESP encouraged them to excel.

“I knew I always wanted to go, but knowing that it was in my account, and that my parents worked hard to keep up the account, made me want to try harder in school to become something in life,” said Nadia Achaa Kyerematen, beneficiary of a Canadian Scholarship Trust RESP.

According to Statistics Canada, young Canadians who had savings put aside for their post-secondary education by themselves, their parents or others were more likely to take some post-secondary education (74 per cent compared with 50 per cent). This dramatic difference highlights the importance of putting aside money and how parents’ attitudes toward saving for college, university or trade school have a big impact on whether a child pursues higher education.

By starting an RESP early in their child’s life, parents clearly communicate expectations for their child’s future success. An RESP is an education savings plan registered under the Federal Income Tax Act that helps families save for post-secondary education. Income earned on contributions grows tax-free until a child is ready to attend college, university or even trade school. The federal government will also match 20 per cent of your RESP contributions through the Canada Education Savings Grant program – this can add up to $500 per year per child or $7,200 over the life of the plan.

Thealia Elsie Braid Black attributes her aspiration for higher learning to her Canadian Scholarship Trust RESP. “If I didn’t have this money, I would have taken a year or two more to work, and might have ended up not going to college at all.”

More information is available online at www.educateyourchildren.ca or toll-free at 1-877-333-7377.

Credit: www.newscanada.com

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