Economics: Media Articles

Chapter 6 Media Article

"Covering the cost of education "
The Abbotsford News, June 1, 2006

This article talks about how education is very important, but paying for it is another matter. The costs for post-secondary are becoming more expensive. For parents who are looking to start early on how to pay for their children's tuition they should think about investing in a RESP (Registered Education Savings Plan). RESP is not tax-detuctable, but the plan can grow based on a tax deffered basis. The RESP can also be transferred to someone else, if the child does not want to go to post-secondary.

In relation to chapter 6

RESP is a way for parents to ensure that their children's future are taken care of. The parents do not have to take money out from their savings when it comes time for little John/Jane to enter the post-secondary life. They can rather take the money out from a RESP that they have set up for them when they were little. This is an article from a Canadian newspaper, therefore this option is not offered to American citizens. Canadians do not have to worry about going into deep debt when their children go to University. People do not want to have pay for education "Stealing Hardvard" style. (That was a joke)

posted by Meghan @ 12:25 PM