What are RESPs?
Simply put, a Registered Education Savings Plan, or RESP, is a special type of savings account designed to help you save for a child's education after high school.
Why would I choose an RESP?
- The Canadian government will match 20% of your annual contributions up to $500 per year to a lifetime maximum of $7200. Education Savings Plan, That's more than $7000 in free money.
- RESPs are tax-sheltered savings plans, meaning you don't pay income tax on the money you make on your investment, as long as it stays in the plan.
- RESPs are tax-advantaged savings combined with free money in the form of government grants. That's what makes them such a smart savings opportunity or RESP, for Canadian families.