Tuition, textbooks, school supplies, educational devices, the list has no end. With the school year starting anew, education is the topic of interest for many parents. As post-secondary costs soar, saving for your child’s future education is becoming a high priority. An RESP is one option that can benefit your family.

What It Is

Registered Education Savings Plan (RESP) is a government, grant-assisted, flexible, and convenient way to save for a child’s future education. Growth in an RESP is tax-sheltered, as long as it remains within the plan. There are no annual fees, only the management expense ratios (MER), which depend on the selected funds.

How It Works

RESPs allow Canadian families to contribute up to $50,000 per child for future post-secondary education. The federal government will match 20% ($500) for the first $2,500 of contributions each year, with a lifetime maximum of $7,200 per child.

For lower-income households, the government will add another 10%-20%, called the Canadian Education Savings Grant (CESG). The government adds this to the first $500 of annual contributions. You do not require a contribution to access the Canada Learning Bond (CLB). This is also only available to lower-income households. The CLB pays a maximum of $2,000 per child. ($500 in the first year and $100 per year of eligibility up to age 15).

Click the CRA link to learn more about RESPs:

Client Story

We have many families that are taking advantage of growing investments for their children in the form of an RESP. The set-up is easy and efficient. We are here to assist with the process and help you understand all the options.
We have individual plans (one beneficiary, Canadian resident, with valid SIN#) and family plans (more than one beneficiary, Canadian residents, with valid SIN#) as offerings into RESPs. This makes it much easier to add future children, related by blood or adoption, to an existing RESP. You can make contributions until the beneficiary is 31 years old.

*It is important to know that there are changes to how one can use the funds for the future, as they are not as strict as they used to be. We are happy to assist you. Give us a call!

Have a question? Or need clarification?
Call to schedule an appointment with one of our advisors.