Resp

February 16, 2012

Dear Member of the Widget Employees Credit Union,

FINANCING FOR A CHILD’S EDUCATION

Do you know how much a future bachelor’s degree would cost for a child born in 2003? Based on estimates of Human Resources Development Canada, it will cost $58,200 (if they live at home or $87,600 (if they live away from home), including tuition, books, living expenses, etc.

What is the RESP?

The Registered Education Savings Plan (RESP) is a plan in which one contributes any amount they want to with a lifetime total of $50,000 toward a child’s future education. The government will also provide an additional 20% (a maximum of $500/year or a lifetime total of $7,200) on top of your contributions. The $7,200 is free money and the interest earned on both your contributions and the government’s contribution is tax free, until the money is spend for the child’s education.

Flexibility and Adaptability

Being a parent is not a requirement to open an RESP. If you wish to support a child (niece/nephew/family friend, could be any kid) financially, this plan would be perfect for that purpose. On the other hand, if a child decides not to pursue post-secondary education, then the money, which has been put into the plan, can be transferred toward another child’s education or your RRSP. The money can also be withdrawn at any time for any reason without any penalty. This can be very flexible in terms of any emergency. Please see the attached brochure called “RESPs Made Simple”, for more information and guideline on RESP.

RESP’s through Widget Employees Credit Union

Please start up an RESP as early as possible, for your child’s future education. A child will appreciate this gift in years to come and this offer is good until the day you pay for your child’s education. Sign up early in order to contribute as much as you can and gain government support compare to other education related plan that are out there.

Sincerely,

Samantha Chang, Director...