You’ve just had a child, and all you can think about is their future. Who will they be? Who will they marry? What job will they have? You want to set them on the road to success, and for most the road to success includes post-secondary education. Therefore, save your money for your child’s future because all post secondary education have one thing in common: money. Whether that is trade school, community college, or university, they all cost money. Here are a few tips to help you save and put aside money for your child’s future.
Start to save for your child’s future early:
The earlier you start saving, the better. Even if you can only put a small amount aside in the first
few years (you just had a kid! The first few years of diapers and formula can get expensive!) it’s
better than waiting until later to start saving. It’ll also get you in the good habit, and make it
easier in the future.
Set up an RESP:
An RESP is a registered education savings plan. It’s a tax free account that you can start for
your child. To make it even easier, set up automatic transfers to this account from your pay.
This way you’ll be saving for your child’s future without even thinking about it.
Rethink the gifts you give your children. Often we want to spoil our children during birthdays and
holidays. This is fine, but it could be less expensive to, instead, start a tradition in your family
that will help you save. You could give your child 3 gifts per holiday: one treat, one article of
clothing, and one toy. Put what you would spend on all the other things into their RESP. Make a
list of other things your kids want and give it to relatives who want to give gifts. They’ll still be
spoiled, I promise.
Secondhand items help you save money:
Your child wants to start hockey? Instead of shelling out the big bucks for expensive sports
equipment, try asking a family member or friend if they’ve got some they can lend or give to
your child. Check out second hand stores, or find some online through Facebook Marketplace.
Look up how much the equipment would have cost full price, and put however much you saved
in your child’s RESP.
Help someone out the way they just helped you. Once your child has outgrown their clothes or
certain toys, see if you can sell any of it at a garage sale or online. You’ll be helping a fellow
parent out, and you can put however much you make into the RESP.