A post-secondary education can be the key to unlocking life’s opportunities. However, as the cost of living increases over time, so do educational expenses at post-secondary institutions. Financing these costs may be difficult if you start late, especially if you have more than one child. A RESP can help offset these costs by working out a savings plan with your advisor and taking advantage of the benefits of a RESP.

RESP Fast Facts

What is it	A plan designed to accumulate money to finance post-secondary education Investment earnings accrue on a tax-deferred basis
Who can use it	Parents, grandparents, other relatives Family friends Adults planning to return to school
Main advantages	Money invested grows tax-deferred When money is used to pay for education costs, the investment growth and grant amounts that are part of the withdrawal are taxed as income to the student (assuming as a student they will be in a lower tax bracket, and will pay little or no tax) If you take full advantage of the guidelines for a RESP, and meet all qualifications, you could be receiving a maximum of $9,200 per child from the government to help pay for your childs education!! (see gov’t grant chart below for more details) Generous contribution limits: up to a lifetime maximum of $50,000 per beneficiary There are a wide range of investment options to choose from Family plans allow accumulated earnings to be shared among more than one beneficiary

Government Grants