How to Balance Income to Save for Your Child’s Education

One of the best ways to manage your child’s education costs is to save in advance. The best way to do it is to open a Registered Education Savings Plan (RESP) for the child’s post-secondary education. However, although most plans have flexibility in payments, it cannot be very easy to contribute because of many competing financial needs. Here are some of the ways to make sure you have money to save for your child’s education.

Eliminate Your Debts

You need to eliminate your debts if you have any before you start saving. Try to add up the amount you spend servicing your debt each month and see how your disposable income could be boosted if this amount was available to spend. Again, debts have costs attached to them in terms of interest.

Cut Spending

If your expenses are so high that you cannot save, consider reducing them by identifying things that you can spend less on. For instance, you need to stop playing all online slots games if you are spending too much on them. The money saved should go to your savings.

Set Savings Goals

RESP is a good saving goal. However, you also need to save for other needs so that you don’t need to reduce your RESP contribution in the event of an emergency. Be disciplined enough to make sure you meet your set savings goals.

Choose the Right Tools

Some tools can enhance your saving culture. For instance, you can open a savings or a fixed deposit account which locks your money. Also, go for accounts with minimum costs and highest interest.

Make Saving Automatic

Sometimes it can be hard to remit money to the savings account, especially if you have much financial need. Having automated transfers to the savings account will help you avoid spending the meant for savings.

These are some of the sure ways to accumulate your savings and contribute to your child’s RESP.