Canadian government partially funds a child’s future education with the RESP, a tax-advantaged savings plan. RESPs can be funded by the Canada Education Savings Grant, and the money saved in these accounts grows tax-free.
● You benefit from free government money.
● The RESP withdrawal can be taxed according to your child’s tax bracket
● The RESP savings are spent on various educational plans and institutions.
● Anyone can contribute to a child’s RESP savings account.
In most registered education savings plans, the beneficiary, promoter, and subscriber are involved.
Subscriber: Generally, a subscriber is a person who opens and funds an RESP account.
Beneficiary: Contributions made to help with education costs will benefit the child.
Promoter: Credit unions, banks or group scholarship providers provide RESPs.
• Growth in savings is tax-free.
• Your child’s RESP will receive better grants.
• It is not tax-deductible to receive financial aid for education.
• GICs, equities, mutual funds, bonds, and ETFs are among the investment options available to subscribers.
• Seek your family or friends help.