Why a CST RESP is the perfect birthday gift?

Every year parents encourage their kids to “make a wish” when they blow out their birthday candles. Younger children wish for things like toys, their favourite food, and usually to the chagrin of their parents, a new pet (elephants and zebras being natural choices, of course). As they get older, children’s wishes begin to evolve and grow as they do. Birthday gifts can be a great way to help ensure that a child’s long-term wishes really do come true.

Giving money as a birthday gift

Similar to graduations and cultural holidays, birthdays are a special time for children; a time when they receive cards, treats and gifts. Babies and small children typically receive clothes and helpful items intended for their parents, who are navigating the new world of parenting. As children get older and understand the concept of gifts, it’s common to give toys and items that nurture their natural interests and hobbies such as puzzles, art kits, dolls and building items.

Many people give children money as a birthday gift in lieu of a physical gift. In fact, it is not uncommon for babies and even older children to receive gifts in the form of money from parents, grandparents, relatives and family friends in amounts of $25.00, $50.00 and even $100.00 or more. While it’s a good idea for children to have some pocket money for both a budding sense of independence, as well as to foster money management skills, putting aside money for a child through a long-term savings vehicle like an RESP is the kind of gift that keeps on giving.

Every birthday boy and birthday girl deserves a CST RESP

Through the power of compound earnings, even a small amount contributed in the early stages of a child’s life can grow to a considerable amount of savings over time. This illustration on the value of saving early demonstrates that the earlier a parent (or family member) invests in a child’s RESP, the higher the value of the RESP is when the child needs it most—when they are ready for post-secondary education.

And that’s not all—through The CST Advantage TM , a CST RESP offers many other advantages including:

Principal protection: Your RESP principal is 100% invested in stable and secure fixed-income government bonds and the principal will be returned to you at maturity.

Earning power you need: The income your principal earns is invested in a mix of Canadian equities, U.S. and Canadian Exchange-Traded Funds (ETFs), and investment-grade corporate bonds to make sure your investment earns  competitive returns over the life of the plan.

Hassle-free: You don’t have to constantly monitor performance. Just decide how much you want to contribute and we’ll take care of the rest.

Flexible study options: CST Plans allow your child to pursue and fund their full or part-time studies almost anywhere:

• Universities

• Community colleges

• Trade schools

• Vocational schools

• Technical schools

• Religious schools


• Distance learning

• Correspondence courses

Transforming birthday wishes into tomorrow’s realities

The next time you find yourself putting money into a child’s birthday card or writing out a birthday cheque to a long-distance grandchild, niece or nephew, think about how much more that money might be worth in the long-run, and how that money can go towards helping to pay for the gift of knowledge and higher learning and through the power of an RESP.

Canadian Scholarship Trust Plan is only sold by Prospectus. Investors should read the Prospectus before making an investment decision because it includes important detailed information.  You can get copies of the Prospectus from www.cst.org or by calling 1.877.333.RESP(7377).