A Registered Education Savings Plan (RESP) enables you to save for your children’s education, with the money growing tax-free until it is withdrawn for use by your post-secondary student. There’s no annual RESP contribution limit, but the maximum lifetime plan maximum per child is $50,000.
Canada Education Savings Grant
If your child is 17 or younger, the federal government's Canada Education Savings Grant (CESG) tops up your RESP contributions by 20% on the first $2,500 you contribute annually, up to a lifetime maximum of $7,200 per child. If you miss a contribution in any given year, the unused CESG “room” can be carried forward and used in the future.
BC Training and Education Savings Plan
For residents of BC, there is also the BC Training and Education Savings Plan (BCTESP) grant which will provide $1,200 for your child's RESP with no matching or additional contribution required on your part. Note, this isn’t automatic – you must apply for the BCTESP grant any time after your child's sixth birthday up to the day before their ninth birthday.
To take advantage of these grants, you first need to set up an RESP for your child (or children). If you don’t already have one, one of our knowledgeable financial advisors can help you start saving for your child’s education today.