What is an RESP?
A Registered Education Savings Plan is a special savings plan in which money grows tax-free until it is withdrawn for post-secondary education. A subscriber, such as a parent, aunt, uncle or grandparent makes contributions on behalf of one or more beneficiaries (a child) named in the plan.
RESP Benefits
Starting an RESP today allows you to save immediately for a child’s future post-secondary education. If you’re wondering how much to save and when to start, the answer is: save as much as you can afford and start today. By starting early, tax-sheltered earnings on your savings can grow surprisingly quickly.
In addition, the Government of Canada will help you with saving incentives that are only available if you have an RESP, including the Canada Education Savings Grant and the Canada Learning Bond. That means free money towards your child’s education savings (in a RESP).