fbpx

Registered Education Savings Plans

It is never too early to start planning for your child’s future education. Set yourself, and your child, up for success with a Registered Education Savings Plan (RESP).

What is it?

An RESP helps you manage future education costs for your loved ones. It lets you accumulate funds to finance a child’s post-secondary schooling and have them topped-up through Government of Canada grants.

Who is it for?

The person the RESP is for must be a Canadian resident with a valid Social Insurance Number (SIN).

What are the benefits?

  • Your investment income can include savings options, interest, dividends and capital gains.
  • You are not taxed on investment income earned, and your child can usually withdrawal the money tax-free (subject to eligibility requirements).
  • The Canada Educations Savings Grant (CESG) pays 20 per cent of what you contribute annually to your RESP to a maximum of $500 in respect to each beneficiary ($1,000 if there is unused grant room from a previous year), to a lifetime limit of $7,200.
  • Subject to income qualifications, an additional yearly amount may be payable under the CESG.
  • The Canada Learning Bond (CLB) will provide an initial $500 to children in modest income families. The CLB also includes an additional payment of $100 for each year of eligibility, up to 15 year, for a maximum of $2,000.
  • Individual and family plans are available. Family plans can help you pool resources in cases where all children in the family might not pursue post-secondary education.
  • RESPs can only be opened by parents, or family and friends with written consent by the child’s care giver.

If you’d like more information regarding RESPs, make an appointment with a Financial Planner today. Contact us today at 1-877-WESTOBA or FinancialPlanning@westoba.com.

Check out our RESP brochure for more information.

HOW MUCH IS ENOUGH?

Our Education Savings Plan Calculator can help you fine tune your plan.

YOUTH ACCOUNTS

It's never too early to start teaching your kids money management skills.