Kids Holding Sign

A Registered Education Savings Plan (RESP) is a smart tool for education savings. Yet for many, the details about how an RESP works isn’t quite clear, and that has led to some misinformation about this easy way to save towards post-secondary education. How do you fare on your RESP intel: can you tell fact from fake? Read on and see.

You already know that there are many smart reasons to open a Registered Education Savings Plan (RESP). Good for you! While helping a child achieve their dreams is likely at the top of your list, the ability to grow tax-free income on your hard earned money in an RESP, and the opportunity to maximize government grants are likely not too far behind.

Consider this last benefit – government grants -- for a moment. All you have to do to receive grants is to continue to contribute to your RESP.

As a parent, saving money can seem hard. You’re bombarded with a big list of costs: from clothing and groceries, to school trips, sports equipment, swimming and dance lessons, it’s an endless list. These costs can make saving towards post-secondary education look challenging.
 

Every parent wishes success for their child, in their career, their relationships and throughout life. As you prepare your child for the world out there, know that there is something invaluable you are doing to ensure their success. You are giving them them access to the higher education, something they’ll need to survive in an everchanging job market!

Did you know that opening an RESP gives you access to money from the government? It's true. Many families miss out on the valuable contributions that are available to boost their child's education savings. 

The Canadian Education Savings Grant (CESG) from the federal government will match 20% of your contributions to your RESP, up of $500 a year. The CESG entitlement can add up to $7,200 per child. That's over $7,000 in money for your child's post-secondary education.

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