RESP

Registered Education Savings Plan
Preparing for your child's tomorrow today

Why Should I invest in an RESP?
An RESP is an investment into your child's future, to assist them when they are ready to enter into post-secondary education.

University costs are escalating at an alarming rate, and government is cutting back on education subsidies. Since the 1980's, tuition has INCREASED by 115%*. For the 1995-96 scholastic year, post-secondary education students spent an average of $9,000 on tuition, housing and food. Within 20 years, a four-year program is estimated to cost $70,000.

How much can I invest in an RESP?

At this time, there is no annual limit on the amount that can be contributed to an RESP, although the maximum lifetime contribution is $50,000 per child. The Canadian Education Savings Grant is capped at $500 per year per child with a lifetime maximum grant of $7,200.00.

Remember that anyone can invest in an RESP, whether it is a parent, grandparent, family member or friend. The sooner you start investing, the more interest your RESP will accumulate.

What if the beneficiary chooses not to enter into post-secondary education?
If your child decides they do not wish to continue their education past high school, you can name another beneficiary of the funds. If there is no other beneficiary you wish to name, your contributions are returned tax free, though government subsidies are reimbursed. All interest gained can either be transferred to a pre-existing RSP, or transferred directly to you (appropriate taxes apply, as well as 20% additional tax). *source: Statistics Canada, Social Trends in Canada, Winter 1998.