Registered Education Savings Plans

A Registered Education Savings Plan (RESP) is a government-approved plan that allows a subscriber (usually a parent) to accumulate savings on a tax-deferred basis to assist with the expenses of post-secondary education for a named beneficiary (child or grandchild). Family Plans allow subscribers to name more than one beneficiary. A social insurance number (SIN) is required for each beneficiary, before being named as a beneficiary.

How RESP's work

  • For every dollar contributed by you, 20 cents of the Canada Education Savings Grant (CESG) is added (subject to annual and lifetime maximums)
  • Savings can grow tax-deferred
  • When your child begins post-secondary education, the money is withdrawn in your child’s name. These amounts will usually be taxed at the lowest marginal tax rate  - or not at all!

Fund Your Child’s Education For Free

You can combine government grants to potentially build substantial education savings. Invest your child’s Universal Child Care Benefit (UCCB) of $100 per month. When you set up your direct deposit for the UCCB, set up a monthly contribution of the same $100 to an RESP for your child.

The entire amount will be tax-sheltered. By the time your child is ready for post-secondary school, the amount may be enough to pay for your child’s education, without spending a penny of your own.

Selecting Investments

There are many different types of investments available to someone saving for future education. Whether it's for yourself or your children, an HMECU Certified Financial Planner will help find an investment that's right for you.

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