Educational Planning (RESP)

Education costs vary considerably...

Education costs vary considerably, depending on where your child goes to school and whether he or she continues to live at home. But no matter what you and your child decide, a post-secondary education can be expensive. To manage these costs successfully, you need an effective, flexible savings plan.

A Registered Education Saving Plan is an education savings plan that has been registered under the Income Tax Act in which money grows tax-free until it is withdrawn for post –secondary education.

A subscriber, such as parent, aunt, uncle or grandparent makes contributions on behalf of one or more beneficiaries (the children) named in the plan.

An RESP plan allows the growth income earned on contribution to remain tax deferred until the child enters the post-secondary program and the money is withdrawn.

A nominated child can be eligible for government grants up to $9,200. 

It is no secret that the education costs are rising dramatically and there are projections that by year 2020 the cost of 4 year university program will be over $100,000. 

Starting the RESP for your child as early as possible gives the child the advantage of time to accumulate more money and a chance to use the government incentives that are only available if you have RESP, including the Canada Education Savings Grant and the Canada Learning Bond.