save for your kids’ post-secondary education with an RESP

Just because your little one is still in diapers, it doesn’t mean it’s too early to start saving for their post-secondary education with an RESP. Having a savings plan in place as early as possible helps ensure that no matter what your little guy or gal dreams of being when they grow up, you can help make that dream a reality.


What is an RESP?


An RESP is a tax-sheltered savings plan designed to help you save for your child’s post-secondary education. With an RESP, the earlier you start saving, the more you will earn. Basically, over the years as your little one becomes not so little, the money in the RESP will do the same.


How does an RESP work?


Simply make contributions (unfortunately they cannot be used as tax deductions) that accumulate tax-deferred earnings and, in return, your child can use the funds to help pay for their education. The funds then just sit and grow in an RESP until they’re needed. You can start saving for your child’s education as early as you’d like.


Now here’s the really good news, an RESP can be used for a variety of education-related expenses including tuition, housing, transportation, books, supplies, and other incidentals relating to the student’s education.


What are some RESP options?


There are a few different types of RESPs (including ones that allow people other than you, the parent, to contribute to) as well as a number of different investment options to choose from. We can help you decide what type of RESP is best and can walk you through all of your investment options, based on your individual situation.


What do I need to get started?


You’ll need a social insurance number for your child in order to open an RESP. The good news is, it’s free to get one and relatively easy to do so. You can:


  1. Apply online, or
  2. Apply by mail, or
  3. Apply in person at a Service Canada Centre near you.

Are there other ways to save for my child’s education?


In addition to RESPs, the Government of Canada also has a number of educational grants as well as the Canada Learning Bond available to make saving for your child’s education a little bit easier.


With the Canada Learning Bond (CLB), the Government of Canada actually puts money into your child’s RESPs, including $500 initially to help you start saving, followed by an extra $100 per year up to the age of 15. They will also give you an extra $25 to cover the cost of opening the RESP.


Keep in mind there are some restrictions regarding who is eligible for the CLB but for those who don’t qualify, you still have the opportunity to get some help from the Government through the Canada Student Grants Program (CSGP).


Through CSGP, there are grants available for a wide range of students including students from low and middle-income families, students with disabilities, students with dependents, and even part-time students.


More information about these programs and how to register can be found on the Canada Learning Bond website and the Canada Student Grants Program website.


Still have questions? When you’re ready, give us a call or stop by your local branch and we’d be happy to discuss the different options available to you.



Please note: some fees may apply for partial or full transfer outs. Please see our service fees here.

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