Save for your child’s education with an RESP

Save for your child’s education with an RESP

CIES is hosting a free RESP sign-up event on November 22, 2017 at the CIES Welcome Centre. Stop by from 10:00 am to 2:00 pm to speak with financial experts and open an RESP for your child’s education. See the poster below for more details.

What is an RESP?

RESP stands for Registered Education Savings Plan. It is a savings plan that helps you save for your child’s future college or university education.

Why should you open an RESP for your child?

There are many advantages to opening an RESP for your child:

  1. FREE money from the Canadian government.

The Canadian government will add free money to your child’s RESP account: the amount of money depends on how much you have saved for your child per year. You will receive an amount equaling 20% of what you have put into their account per year. This means your child could receive up to $500 in extra money per year to put towards their future education.

  1. A more successful future for your children.

By opening an RESP, you are providing your children with the money to go to college or university. If your child graduates from college or university, then they are more likely to earn more money and be more successful over their lifetime than if they did not go to school.

  1. A dedicated savings account for education.

Opening an RESP gives you a dedicated savings account, which you will use only for the money for your child’s education. Having the money in its own account increases the chance that you will not spend the money on other things and will make saving much easier.

  1. No tax on your savings.

When you withdraw the money to pay for your child’s school, you will not have to pay tax on the amount that you saved. There is only one other savings account that lets you do this – the TFSA, or Tax-Free Savings Account.

 

Related Articles