Post-secondary education is expensive, but Canada’s RESP system makes saving easier if you know how to use it. This guide explains RESP basics and how to maximize RESP education savings Canada for your children.
1. What is an RESP?
A Registered Education Savings Plan (RESP) is a tax-advantaged account for post-secondary education. You can:
2. Understand the Canada Education Savings Grant (CESG)
The CESG is a key benefit of RESPs. The government:
To maximize education savings in Canada, you should aim to contribute enough each year to receive the full available CESG.
3. Choose individual vs family RESP
An individual RESP is for one child. A family RESP allows multiple children to share the plan, as long as they are related by blood or adoption.
Family RESPs offer flexibility if some children use more education funds than others.
4. Select an investment strategy
Within an RESP, you can invest in:
Mode Money Managers™ can help you choose an investment mix that starts more growth-oriented when children are young and becomes more conservative as they approach post-secondary age.
5. What if your child doesn’t go to school?
If a child does not pursue eligible education:
A planner can explain your options in detail based on your situation.
Mode Money Managers™ helps families integrate RESPs into their overall financial plan so education savings, retirement, and other goals stay in balance.
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