Accounts to pay for college or even private high schools can be a smart way for parents to prepare for their children’s futures. Not every account is the same, and certain savings accounts could affect financial aid eligibility and taxes. It is in parents’ and students’ best interests to educate themselves on the various education savings plans available to them – and which one’s make the most sense for their families.
Families should do their research and work with professionals who understand the subtleties of school savings plans. Students’ income and savings have a larger, more negative impact on the availability of financial aid than the portion of their parents’ assets factored into the equation. Students with sizeable savings accounts in their name may end up adversely affecting their financial aid eligibility. A financial advisor and loan expert can advise families on these confusing financial facts.
Canadian Education Savings Grant: With a CESG, parents can save for their child’s education by opening up a Registered Education Savings Plan. The government then matches the money up to a certain percentage and deposits it into the child’s RESP. The extra funds the government deposits are called the CESG.
Parents can help finance their children’s educations through various savings plans. A financial advisor may shed more light on which products are best for families.