At this stage in my life, it seems that everyone I know is having babies. And with those babies come many celebrations – from baby showers to birthdays, and even graduations.
Don’t get me wrong; I love my friends and family, I love their children and I love a good celebration. But, what I don’t love is the challenge of deciding on just the right gift for that celebration.
Finding the perfect gift for the little ones in our lives gets harder and harder every year. On one hand, you want to buy them the latest and greatest gadget or toy. But, on the other hand, you want something that won’t lose its value or appeal in the blink of an eye. You want something that is the perfect balance between what the child wants and what won’t drive their parents crazy (Trust me, we have plenty of the latter.).
Instead of the next greatest gadget or toy, I want to gift them with something that is memorable. Something that they will not outgrow in 2.5 seconds. Something that they will remember for a lifetime. Something that will, instead, grow with them.
I want to give them the gift of knowledge.
Yes, you can give educational toys. And yes, you can give books. Books are good, we do love a new book. But, you could also take it one step further and give a monetary contribution to that child’s registered education savings plan (RESP).
Some may think that giving money as a gift is impersonal, insignificant or “the easy way out.” They may not see the direct benefits of handing a one-year-old a $20, $50 or $100 bill. But, they must look beyond the “right now” and see the benefits that that small amount of money will bring to the child’s future.
The RESP is a Canadian investment plan used to save for a child’s post-secondary education. One great thing about RESPs is that money saved in the plan is tax-sheltered until withdrawn, whereupon it is taxed at a student rate – and students typically pay little to no tax. Another great feature bonus to this type of plan is that – provided you qualify – the federal government will also make contributions through the Canada Education Savings Grant (CESG), which provides an additional 20% on contributions to a maximum $500 per year, and a maximum $7,200 over the life of the plan.
So while you may not think that a few dollars in an envelope each year will benefit the child, think again. The gift of money, if invested in an RESP, will grow with the child. And down the road, will also help them grow.
Trust me, as a mom that is dreading the cost of a post-secondary education 18 years from now, giving the gift of an RESP contribution will be much appreciated. And as a 30-something who benefited from an RESP started in her name, I am now beyond appreciative of those monetary gifts I received throughout my childhood.
So, the next time you find yourself pondering what to get that child in your life for their birthday, graduation or celebration in between, think of their future.An RESP contribution is truly a gift that keeps on giving.
What unique gifts have you gifted, or received? I’d love to hear!
*As a Heritage Ambassador, I received compensation in exchange for this post. However, all opinions and advice shared are 100% my own. Thank you Heritage!
