Registered Education Savings Plan (RESP)
Registered Education Savings Plan (RESP) is an account registered with the
federal government to help you save for your child’s post-secondary education
(after grade 12). You can open an RESP as soon as your child is born.
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How does the government help?
When you put money into an
RESP, the Government of
Canada will add money to it
through the Canada Education
Savings Grant. The amount
depends on how much you’ve put
in and your family income.
The government gives more help to
families with modest income. This may include an enhanced Canada
Education Savings Grant and a Canada Learning Bond.
After high school, the grant money your child received can be withdrawn to help
pay for either full-time or part-time studies: in an apprenticeship program; at a
trade school; at a college; or at a university. Your child will pay taxes on the mon-
ey they withdraw. Since many students have little or no other income, they usually
don’t have to pay much tax when they withdraw money from their plan.
Who offers RESPs and how can you start one?
You can open an RESP at almost any bank, credit union.
Before you open the RESP, you and your child both need to have a Social
Insurance Number. There's no fee to get a SIN; but certain documents, such
as a birth certificate, are required. More info on the documents can be found
here: http://www.servicecanada.gc.ca/eng/sin/apply/proof.shtml
Take Note! If your child does not attend school after high school, any grant money received
must be paid back to the Government. The money you invested stays with you.
Take Note! If you opened an RESP and are not the primary caregiver, then you must ask him or
her to complete their portion of the application form. If they don’t do this, the child cannot get the
additional grant.
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