Details

In it’s simplest form, it is an Education Savings Planaccount that is designed with the purpose of financing an individual’s higher education. It is common for Grandparents to provide an education fund for the grandchildren as a way of providing financial support. By gifting money through a fund of this nature, the giver can be confident that the money will be put to good use.

Unlike a lump sum, which could potentially be spent on something like a car or a holiday, the money in an education fund can only be used for the purposes of education.

This means that the person receiving the gift can only access it by putting in their own commitment to study.

When the recipient reaches a certain age (or education level) the money can then be spent on access the education they choose.