Registered Education Savings Plans
A RESP is a type of investment account that helps you save money for your child’s education. It allows you to collect government grants and potentially qualify for other benefits such as tax-deferred growth on your contributions and income earned from them.
RESPs can be opened in any bank or credit union and are available to anyone, regardless of income level. Contributions are tax-free and earnings grow tax free until they’re withdrawn. The federal government has created the Canada Education Savings Grant (CESG) and the provincial government has created its own grant programs to help you save money in an RESP.
You can use them for any post-secondary school, including trade schools, colleges or universities. You don’t have to use all of your grant money at once. And if something unexpected happens with your child’s plans, you can always change their name on the account.
You can open an account when your child is born or later in life — it’s never too early or too late to start saving for their future!
There are many reasons why RESPs are great investment vehicles. Contact us to know more.