Knowledge First Financial Inc., Canada’s largest RESP company, announced it stopped selling certain RESPs on January 23, 2019 due to lack of sales.
The RESP is a government program created in 1972 to help your grandparents save for your parents’ university education.
Since then, both the world and education options have changed.
When your parents were born, your grandparents were pretty sure of the path that they would take for education. After high school, your grandparents wanted them to go to a local university, get a bachelor’s degree and after graduation, start a lifetime career. While working in a career, they would raise their family in the same city as them, so they could be all together.
Since then, how has the world changed?
The path to success for children is no longer as simple as a local university degree. Education is offered through local, global universities and online. Children graduating high school today need choices and flexibility for their future education.
Many children graduating today skip university altogether and start their careers early by apprenticing, to avoid the huge financial burden associated with education. While the RESP was a great way for your grandparents to save for your parents’ education, you need more flexible options for your children.
So how do you save for your children’s future education when there are all these opportunities available to them today?