If your children are young, you probably feel like you've got a lot of time to save for their educational future. But the truth is that time sails by before you know it. Our educational savings plans are designed to make time work for you. When you combine years with compound interest, you'll see your nest egg grow steadily. The earlier you start saving, the stronger and bigger your nest egg will be.
Not only will you reach your dream of providing your child with a life-changing opportunity, your child will be able to continue her education without the burden of financial stress.
What is a Registered Education Savings Plan (RESP)?
An RESP is a special savings account that can help you, your family or friends start saving now for your child's education after high school.
RESP's are registered by the Government of Canada. That means your education savings will grow tax-free until the person named in the RESP enrolls in studies after high school.
When you open an RESP account for your child, the Government of Canada will help you save by adding money to your RESP through special saving incentives. These incentives are called the Canada Education Savings Grant and the Canada Learning Bond. These are only available if you open an RESP.
Can I open an RESP?
Anyone, including parents, guardians, grandparents, other relatives or friends can open an RESP account for a child.
Do I need anything special to open an RESP?
You will need your own Social Insurance Number (SIN) from the Government of Canada and one for the child you are saving for. There is no fee for getting a SIN and even a baby can have one.
If you don't have a SIN, you can contact your local Service Canada Centre, call 1-800-622-6232 or visit the Government of Canada website.
Is there only one type of investment?
There are a lot of investment options for your RESP. The key is to understand what your goals are, how long you want to invest, if it's a family or individual plan that you'll need and so on.
Don't worry, you certainly don't have to figure this out on your own. That's what we're here for. Please contact our education investment specialist to help you make an informed decision.