Investing in Your Child’s Future, the Smart Way
Education is one of the most valuable gifts you can give a child—and planning early can significantly reduce the financial burden later. The Registered Education Savings Plan (RESP) is a powerful, government-supported savings plan designed to help families prepare for post-secondary education in a tax-efficient way.
We help families across Quebec and Ontario understand how RESPs work, how to maximize government grants, and how to invest appropriately based on timelines and goals—while following all rules set by Canada Revenue Agency and provincial regulators.
What Is an RESP?
An RESP is a registered plan that allows parents, grandparents, and other contributors to save for a child’s future education.
Key advantages include:
• Tax-deferred investment growth
• Access to government grants
• Flexible investment options
• Withdrawals taxed in the student’s hands (often at low or zero tax rates)
RESPs can be used for a wide range of post-secondary education programs in Canada and abroad.
Who Can Open an RESP?
An RESP can be opened by:
• Parents or guardians
• Grandparents
• Other family members
• Friends (with the child as beneficiary)
The beneficiary must be a Canadian resident and have a Social Insurance Number (SIN).
Types of RESPs
1. Individual RESP
• One beneficiary
• Flexible contributions
• Suitable for any family structure
2. Family RESP
• Multiple beneficiaries (related by blood or adoption)
• Shared contribution pool
• Ideal for families with more than one child
We help determine which structure best fits your family’s needs.
RESP Contribution Rules
• No annual contribution limit
• Lifetime contribution limit: $50,000 per beneficiary
• Contributions are not tax-deductible
• Over-contributions may result in penalties
Even small, consistent contributions can grow significantly over time.
Government Grants Available
Canada Education Savings Grant (CESG)
• 20% grant on the first $2,500 contributed each year
• Up to $500 per year
• Lifetime CESG maximum: $7,200 per child
Unused grant room can be carried forward.
Canada Learning Bond (CLB)
• Available to eligible low- and modest-income families
• No personal contributions required
• Government deposits funds directly into the RESP
Quebec Education Savings Incentive (QESI)
(For Quebec residents)
• 10% on annual contributions
• Up to $250 per year
• Lifetime maximum of $3,600 per child
We ensure Quebec families receive all eligible incentives.
What Can RESP Funds Be Used For?
RESP funds can be used for:
• University and college programs
• Trade schools and apprenticeships
• CEGEP (Quebec)
• Certain programs outside Canada
Eligible expenses include:
• Tuition
• Books and supplies
• Living expenses
• Transportation
• Housing
How RESP Withdrawals Work
There are two main types of withdrawals:
Educational Assistance Payments (EAPs)
• Made up of government grants and investment growth
• Taxed in the student’s hands
• Often taxed at little or no tax due to low income
Post-Secondary Education (PSE) Withdrawals
• Return of original contributions
• Not taxed
Withdrawals are only permitted when the student is enrolled in a qualifying program.
What If the Child Doesn’t Pursue Post-Secondary Education?
RESPs offer flexibility:
• Funds can be transferred to another eligible beneficiary
• Contributions can be withdrawn by the subscriber (no tax)
• Investment growth may be transferred to an RRSP (subject to limits)
• Government grants may need to be returned
We help families plan ahead to avoid unnecessary penalties.
How to Invest Inside an RESP
RESP investment choices should reflect the child’s age and timeline:
• Younger children → growth-oriented investments
• Approaching post-secondary → more conservative options
• Near enrollment → capital-preservation strategies (e.g., GICs)
We help adjust the investment mix over time to balance growth and protection.
RESPs vs Other Savings Options
| Feature | RESP | TFSA | Non-Registered |
|---|---|---|---|
| Government grants | Yes | No | No |
| Tax-deferred growth | Yes | No | No |
| Education-specific | Yes | No | No |
| Withdrawals taxed | Student | No | Yes |
For education planning, the RESP is often the most efficient first choice.
Who Should Consider an RESP?
RESPs are ideal for:
• Parents planning for future education costs
• Grandparents supporting grandchildren
• Families wanting government-assisted growth
• Quebec residents seeking QESI benefits
• Anyone planning long-term education funding
Starting early—even with modest amounts—can make a meaningful difference.
Our Role in RESP Planning
As an independent advisory firm, we help families:
• Choose the right type of RESP
• Maximize federal and provincial grants
• Select age-appropriate investments
• Coordinate RESPs with other savings plans
• Plan withdrawals efficiently
• Avoid over-contributions and grant clawbacks
• Adjust strategies as family circumstances change
Our approach is educational, transparent, and family-focused.
Give Education the Advantage of Time
An RESP turns time, discipline, and government support into opportunity. With the right structure and guidance, it can significantly reduce the financial stress of post-secondary education.
If you’re planning for a child’s future—or reviewing an existing RESP—expert guidance helps ensure nothing is missed.
Book a consultation with us to build or optimize your RESP strategy and give your child’s education a strong financial foundation.
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