When is the right time to start an RRSP?

Young or not, I am sure we've all heard about or have been told about RRSP's and saving for our retirement. Today I read a great article in the Brandon Sun regarding views of University students on starting RRSP's when your young and the benefits. 

I myself found it a hard thing to understand when I first obtained my professional career, but nonetheless I started one.  I figured out how much I could afford a month and opened up an account for my RRSP to go into at my local bank.  I now continue to contribute to it every month, I don't really miss the contribution from my paycheck as it comes out at the start of every month.  I suppose you get used to it I could say, I forget about it but I know in years to come it will be there and it's growing!

I think most young adults find it hard to part with their money for an RRSP at this age because the end is so far from where we are now.  However, saving for retirement will be beneficial in the future when you can take a cruise to somewhere warm or maintain the home you live in and don't want to part with.

There are other options than an RRSP, most banks have Tax-free savings accounts, or TFSAs, which allow Canadians to save up to $5,000 each year with all earnings and withdrawals exempt from taxation. Most students in the article said they would prefer this option at a young age. I never thought about it at the time, but I do have one now for my smaller savings!

(Bruno Delorme, the students' business teacher, said young people want and need more financial literacy in the classroom, including information about RRSPs and tax-free savings accounts.
"One of the key success factors in finance is that compounding effect of money, the compounding value," Delorme said.
"If the students begin to invest, albeit a small amount like $500 annually, if they should start at the age of 16, 17, 18 by the age of 50 or 55, they could be rich people.") Brandon Sun

I think that if it's right for you then you should do it, if it's not seek something that is. Your local DPCU branch can guide you in the direction that's best! Drop by and see them today!

If you are interested in reading the article from the Brandon Sun you can check it out here:
http://www.brandonsun.com/business/breaking-news/teens-say-rrsps-are-for-after-university-when-its-time-to-get-serious-138582389.html?thx=y

TTYL

Whitney