TORONTO, ONTARIO — (Marketwire) — 12/20/11 — Whether they go by Grandma, Grand-pere, Bubbie, Naniji, Nonno, Abuela or YehYeh, and they celebrate Christmas, Noel, Hanukkah, Eid, Kwanza, Navidad or Novena, grandparents have at least one thing in common – they love to spoil their grandchildren during the holidays.
According to a study from BMO Financial Group, grandparents give, on average, approximately $100 annually to each of their grandkids. Why not invest in their future this holiday season by giving the gift of an education through a contribution to your grandchild-s Registered Education Savings Plan (RESP)?
An increasing number of Canadians are contributing to RESPs; according to Statistics Canada, RESP assets grew to $25.9 billion by the end of 2009.
Opening an RESP for a child is getting increasingly critical as the costs of post-secondary education rise. Currently, a four-year degree can cost as much as $60,000. Given current trends, some sources estimate that children born in 2011 can expect to pay as much as $140,000 for their degree when they enter college or university.
“Contributing even small amounts to an RESP can go a long way in saving for a post-secondary education,” said Mark Stewart, Director, Product Development & Management, BMO Investments Inc.(i) “Many grandkids receive some cash gifts during the holidays; these amounts, if invested in an RESP, will grow over time through compounding interest and the funds provided by the federal government-s Canada Education Savings Grant.”
Grandparents- How much of a difference can a holiday gift of $100 make to your grandchildren-s RESPs?
If each set of grandparents gives the gift of $100 per year to their grandchild-s RESP, by the time the child turns 17 years old, he/she could have up to $11,000 saved for a post-secondary education. This takes into consideration the federal government-s Canada Education Savings Grant.
Interested in starting or contributing to an RESP for your grandchild? Here is some advice to get you started:
(i)BMO Investments Inc. is a financial services firm and a separate legal entity from the Bank of Montreal
For more information on RESPs please visit:
Contacts:
Media Contacts:
Amanda Robinson, Toronto
416-867-3996
Sarah Bensadoun, Montreal
514-877-8224
Laurie Grant, Vancouver
604-665-7596