Post-secondary education is one of the best gifts you can give to your child. As a parent, you are obliged to plan on how best you can finance your child’s college education. A registered education savings plan (RESP) is a valuable tool towards financing your child’s education. The best thing with this account is that the fund is sheltered from taxation.

Who ought to consider an RESP?

Any parent/guardian concerned about the future of his/her child

Benefits and characteristics of an RESP

  •  An RESP requires the subscriber to be related to the beneficiary by blood or adoption
  •  There are no restrictions on you and the child. It can be your niece, nephew, grandchild or your own child

Other benefits include;

  •  You are allowed to change the plan beneficiary
  •  The beneficiary enjoys a tax deferral on his or her investment income
  •  It protects your invested capital up to over 100% against financial market fluctuations
  •  With an RESP, you can apply for a government grant or up to $7,200, or 20% of your total annual savings to the plan (worth up to $500 annually)