Savings for College: Presented by Bromwich and Smith
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The document provides tips for saving for college, including starting an RESP as early as possible to benefit from tax deferral and government contributions. It recommends saving $100 per month for 18 years to accumulate over $40,000. Applying for scholarships early is also suggested, as is having a student work part-time to help pay expenses. Seeking advice from a financial planner can help create a savings plan that takes advantage of all programs and tax benefits. Loans may be necessary if not enough has been saved, but overborrowing risks serious financial difficulties.
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Savings for College: Presented by Bromwich and Smith
- 2. Saving for college can seem like a daunting task. With ever escalating university costs, it might seem impossible. Here are a few tips to help you prepare for university costs. Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca
- 3. Paying for a university education is more than just tuition. Other expenses can include: •Textbooks, supplies and computers (software and Internet) •Student fees •Housing •Transportation costs •General living expenses (bills) and groceries •Health care •Entertainment Know What You’ll Need Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca
- 4. Start your Registered Education Savings Plan (RESP) as soon as possible. Benefits include: •Income earned inside an RESP is tax-deferred. •The government contributes to a student’s RESP. •At the time taxes are due, they are payable by the student who is likely to pay at a much lower rate. Open an RESP Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca
- 5. The Sooner You Start Saving, the Better Never assume you can’t save enough. Any savings you can manage can help if you give them enough time to grow. Investing just $100 a month for 18 years will yield over $40,000, assuming an 6.5% compounded annual return. Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca
- 6. Apply for scholarships. Start your research early. There are many scholarships available but the competition can be fierce. Scholarships vary in nature and award amounts. You might find scholarships based on: •Academic merit •Athletics •Intended program of study •International students Apply early and often. Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca
- 7. Part Time Work While it may not seem like much, the income from your future grad’s part time job can add up quickly to help cover college expenses. Even if it only goes towards pocket money, it’ll be that much less that comes out of your monthly budget. Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca
- 8. Budget for your new expenses Build room into your monthly household budget for new expenses related to university. Look for cost cutting opportunities in your budget now so you don’t come up short when the extra bills start rolling in. Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca
- 9. Seek Professional Financial Planning Advice Meet with a knowledgeable financial planner early on. Learn about special investment programs, any tax implications or available tax credits and the best ways to save before putting your plan into place. Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca
- 10. What if you haven’t saved enough? Federal, state, and private grants and loans can bridge the gap between your savings and tuition bills, even if you think you make too much to qualify. Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca
- 11. Before taking on more debt to pay for college costs, closely examine your financial situation: •How much debt are you carrying already? •How much have you saved for retirement? •Would you be able to survive and financial setback such as a loss or reduction of current income? Should you go into debt to pay for university expenses? Overborrowing can lead to serious financial difficulties. Meet with a financial professional before taking on additional debt. Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca
- 12. For More Information or Other Ways to Help Manage Debt in Alberta Visit www.solvingdebt.ca Bromwich and Smith: 1-866-353-6726 inquiries@solvingdebt.ca