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Episode 1: What Is An RESP: [ Ссылка ]
Episode 2: 6 Reasons Why You Should Open an RESP: [ Ссылка ]
Episode 3: RESP Rules You Need To Know: [ Ссылка ]
The first three episodes of this mini series were geared to opening up an RESP, but what are scenarios where an RESP may not be best for you?
1) You haven't saved enough for retirement: You first focus should be on your own retirement. Once you have a solid retirement plan in place, you can then reallocate some of your resources to an RESP.
2) No room in the budget: The world is getting more and more expensive as the days pass, so there may not actually be room to allocate money to an RESP. If possible, try to rebalance your budget; if there still isn't room available, wait until funds free up and you can slowly build it into your plan.
3) High interest debts need to be paid off: If you're struggling to pay off high interest debts, do not concern yourself over an RESP. Pay off those debts, and worry about RESP funding later.
4) Cash flow planning: This is more of a psychological approach, but this planning refers to using current cash flow to pay off your mortgage and any other debts. Ideally by the time your children reach post-secondary school, your mortgage will be paid off which allows you to allocate your cash flow for education purposes.
5) You want your child to pay for their education: This is not a recommended strategy for a number of reasons, but make sure you communicate with your child that they will not be getting any financial help for their education.
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