I was pleasantly surprised to receive the kids’ Registered Education Savings Plan (RESP) statements and see that they are accumulating a tidy sum.  They are young at 4.5 and 2.75 (can’t forget that 1/4!) years old and post secondary education seems like a long way off. At least it feels like we’re on the right track.

 

Here’s how we’re saving:

 

Canadian children receive the Universal Child Care Benefit (UCCB) of $100 per month for 6 years. It goes in our bank account like clockwork each month. We set up a continuous savings plan of $200 per month (per child) which is withdrawn on the 15th of each month and invested into a mutual fund. This totals $2,400 per year per child. We find another $100 to top up the annual savings amount to $2,500 which means that we receive a 20% Canada Education Savings Grant (CESG) of $500 each year which is deposited directly into the RESP account.

 

I’m still amazed how these amounts grow and thrilled to think that we’re on the path to contributing to our kids’ education.