A Registered Education Savings Plan (RESP) is a type of savings plan specifically designed for the purpose of saving for a child’s post-secondary education.

Registered Education Savings Plans (RESPs) Explained

A Registered Education Savings Plan (RESP) is a type of savings plan specifically designed for the purpose of saving for a child’s post-secondary education. The RESP is registered with the Canadian government and is eligible for government grants and incentives, making it a popular choice for families looking to save for their child’s future education.

The RESP allows contributions to be made by parents, grandparents, or anyone else wishing to contribute, and the funds are invested in various types of investment vehicles, such as stocks, bonds, or mutual funds. The contributions grow tax-free until they are withdrawn, at which point the money is taxed in the child’s hands at their current tax rate.

Additionally, the Canadian government offers grants under the Canada Education Savings Grant (CESG) program, which provides an additional 20% of contributions up to a maximum of $7,200. The RESP funds can be used to pay for tuition, books, supplies, and other expenses related to post-secondary education.

Overall, the RESP provides a convenient and tax-efficient way for families to save for their child’s future education, while also benefiting from government incentives and grants.

Please contact us if you’d like to learn more or open an account.