Registered Education Savings Plans (RESPs) are one of the best ways to help you, your children, or your grandchildren make the dream of college or university a possibility. RESP's are:

Flexible: Anyone can open and contribute to an RESP, and there are options available should your beneficiary choose not to pursue post-secondary education. Funds can be used to cover an array of post-secondary expenses; including tuition fees, textbooks, and room and board. A minimum contribution of only $25 per month is required.

Tax-sheltered: You do not need to pay tax on any investment income associated with RESPs. Withdrawals are taxed to the student beneficiary at his or her marginal tax rate which is typically in the lowest tax bracket.

Government grants available: Opening an RESP and making regular contributions qualifies you for government grants such as the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB).


A Registered Education Savings Plan (RESP) allows you to save for your child's future education needs.  It is a tax sheltered investment that allows your investment to grow.  The biggest RESP benefit it that the government will kick in 20% of your contributions, up to an annual limit of $2,500 and a lifetime limit of $7,200.  This program is called the Canada Education Savings Grant (CESG) and is available to all income levels.  Lower and middle income families may be eligible for additional grants such as the Canada Learning Bond.   

Things to know:
  • Contributions are not tax deductible
  • You can contribute up to $50,000 per child (beneficiary)
  • Funds are withdrawn in the beneficiary's name and become part of their taxable income for that year.
Anyone can invest funds in an RESP for a child.  Typically it is a parent, grandparent or guardian.  There is certain information you need to provide for the child to open the RESP. 
Investing in an RESP helps to ensure that when your child or the beneficiary is ready to attend post-secondary, there are funds available to assist with the cost.  Education can be a huge expense so starting early is always a great idea. 
There is no annual limit to how much you can contribute to an RESP, but there is a lifetime limit of $50,000 per child.  If you did not maximize your contribution in previous years, you can catch up at $2,500 per year in addition to your $2,500 contribution in the current year. 
Multi-children families can open an RESP Family Plan.  The same benefits and contribution limits apply and there are efficiencies in holding one plan, rather than multiple individual ones. 
For in-depth RESP planning, contact our Financial Services Advisors.  
Canada Education Savings Grant (CESG)
The Canada Education Savings Grant (CESG) is money that the Government adds to an RESP. This money helps to pay the costs of a child’s full- or part-time studies after high school, up to a lifetime maximum of $7,200.

Canada Learning Bond (CLB)
The Canada Learning Bond (CLB) is money that the Government adds to an RESP for children from low-income families. This money helps to pay the costs of a child’s full- or part-time studies, up to $2000. No personal contributions are required to receive the CLB.

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