Registered Education Savings Plan
If you are a parent or grandparent, consider opening a Registered Education Savings Plan (RESP) to help fund your child's postsecondary education. Many families use it to save money for their children's future postsecondary education. With an early start on saving, they will have more money for higher education or vocational training. So, what exactly is a RESP in Canada? Let's find out.
To save up for a child's or grandchild's education without paying taxes on the earnings and receiving matching funds from the government, consider opening a Registered Education Savings Plan (RESP). Per the terms of a RESP in Canada, a maximum of $50,000 can be contributed throughout a child's life. Funds from a RESP can be used to cover the expense of the following, whether attended full- or part-time:
- The value of apprenticeships
- CEGEPs (general or vocational colleges in Canada)
- Technical institutes