Saving for your Children’s Future

Many students leave school with student loans as large as a mortgage. I was blessed that my parents saved for two years of my tuition, which meant a much smaller loan at graduation.

At MTL, we suggest starting early. Saving just $50 a month earning 6% per year results in over $19,500. If you save that same amount in a Registered Education Savings Plan (or RESP), that same contribution will grow to over $23,500 in 18 years.

We also strongly recommend that when post-secondary school starts, not to use those education savings first. Apply for student loans! That way, your student can use the borrowed money interest-free while in school. Even better, a large portion of the loan is often forgiven through grants. Apply for the loan, use it interest-free while in school, have a portion forgiven and pay off the rest with your savings.

My own kids are not far from high school graduation. By following these steps, I hope to do for them what my parents did for me.