If you have children grandchildren, you know how important it is to provide for their futures. With the cost of post-secondary education increasing every year, a Registered Education Savings Plan (RESP) is one way for you to contribute toward your children’s or grandchildren’s education savings goals all year round.
The Registered Education Savings Plan (RESP) is a popular savings strategy for your child or grandchild’s future. Not only is the tax on the income accumulating in the plan deferred until funds are paid out, the federal government will also contribute to the plan through Canadian grants.
4 Reasons to Start an RESP
1. Free Money?
The government has initiated grants to help fund your children or grandchildren education. In BC the government has 3 Grants, Canadian Education Savings Grant, Canada Learning Bond and the BC Training and Education Savings Grant.
2. Tax Free
You can contribute to your RESP tax free. All payments, dividends, and growth in the account is not taxable
3. Dedicated Savings
The RESP is a separate savings account for you to contribute over the years for your Childs education. The RESP Account is solely dedicated to contribute to your Children's learning.
4. Multiple Account Subscribers
More than one RESP Account? No problem. RESP Accounts allow parents, grandparents and siblings to open an RESP account and contribute to the Childs education.
Find more answers to your questions and the benefits to you and your family.