Trust me, that's not a big number I threw up on the screen to get you to read. It's very realistic, and almost anyone reading this has the ability to build up $50K in the bank for their kiddo's education.
Living is expensive, parenting is expensive, adulting is expensive. I get it. Before you freak out and panic at the amount of money you think you will need to put aside each month, STOP! You do not need to be forking over $1,000 a month just to barely get by in order to fund your child's education. The earlier you start, the easier it will be.
And if you've got more than one kiddo, don't worry, this works for as many kids as you want.
So what's the big plan? How can you have $50,000 ready for your child's education? The answer is simple. And no, you don't have to be a financial genius, or even understand what a "dividend" is either. There are professionals out there who specialize in this field for you.
Recently, I spoke with my good friend and professional wealth management consultant, Kreesan Naidoo! We were talking about ways in which young parents could save money for their kid's future. He said that, believe it or not, building wealth and investing in your child’s future actually begins the day they are born.
It's done by setting up an RESP, which stands for Registered Education Savings Plan. From an early age, you'll have an opportunity to set up your children’s education savings plan to kick-start their financial independence and stability from an early age! Kreesan also mentioned that he just set up his one year old niece with an RESP the other week, so, it's NEVER too early to start.
But how much do you have to put away each month to have enough for your child's education?
According to the Royal Bank of Canada, a weekly investment as low as $25 will translate to $11,623 in 6 years, $29,308 in 12 years, and $50,911 in 18 years. That's HUGE!
Okay but what if I don't have $25 laying around every week? The answer: You actually do. Here are 3 ways to get that $25 a week.
1. Cut back on buying fancy coffees: the average price of a Starbucks drink can cost you almost $5. If you are getting 1 of these each work day, that's $25 a week (5 days x $5 ) or $100 a month! If you switch to home-brewed coffees and drinks, you're saving $100 a month.