Getting admitted in a great university not only revolves around scoring good grades, but it also requires for your capital. If you plan to study abroad in a well-known university which promises a great future, you have got to save from now. Along with studying, you can gear up and save for your education all by yourself.
RESP is one of the best ways to save for your education and university. Before digging in, here is something you should know about RESP.
RESP stands for Registered Education Savings Plan. Before diving in, let us understand that what is RESP.
What is the Registered Education Savings Plan or RESP?
An RESP or Registered Education Savings Plan is one of a kind contracts which is formed between a person or organization and an individual. The individual here is the subscriber or the person who is acting on behalf of the subscriber and the person or organization, and they are the promoter. In this contract, the promoter agrees to pay EAPs to the beneficiaries.
How to save through RESP?
Setting up an RESP:
RESP is one of the easiest ways to save for yourself. It can be initiated by your parents as well. RESP is a flexible solution. All you have to do is invest a little amount of money every month for yourself, which will return to you in a bigger and better amount when you need to fund your education or for your university.
You can estimate how much you need to save for your dream university with the RESP calculator. If you work at a part-time job, it is very easy for you to save. You can undergo all kinds of part-time jobs to save some money which in future promises your dream university which will only brighten up your future.
Make the contributions to your RESP automatic:
If it gets hard for you to remember to make your investment portion every month, you can make the contributions automatic. So, what you can do is that you can ask your bank to link your contributions to RESP directly from your savings account. So, you will not have to worry every month to make a contribution and you will probably never miss out.
All you will have to do is that you got to make sure that your savings account has the right amount.
Other than that, there are a few more things you can do to save money smartly for making contributions to RESP:
- A part-time job helps
- Sell the items which are no longer of use to you including clothes, toys, and more.
- Cut out on extra expenses.
- Spend less, save more.
If you want to save for your education you have to take charge on your own. You cannot depend solely on your parents or other members of your family. So, start acting right away and start saving for your foreign education now at your favorite dream university.