Registered Education Savings Plan

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 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  • When your child begins post-secondary education, the money is withdrawn in your child's name.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 eduation 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 a 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. 

Our Registered Education Savings Plan Calculator assists in determining the cost of a child's post-secondary education and maps out the savings required - through individual contributions and government grants - to meet the financial target. Click to see our RESP Calculator.