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Need help understanding RESPs?

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Getting Started: Education Savings Terms You Should Know

An RESP is a Registered Education Savings Plan. RESPs allow you – or grandparents, friends, or other relatives – to save money for your child’s post-secondary education. RESPs are different than other savings vehicles and have many built-in or optional benefits for both subscriber (the person who sets up the RESP) and the beneficiary (the recipient of the RESP)!

Quick Hits

• Did you know you could access up to $7200 in grants?  Find out what additional supports are available to help your RESP grow.


Your child has countless education options: community college, universities or CEGEPs, vocational, technical, trade, or religious schools – even approved overseas schools or correspondence and distance learning programs!


If your child decides not to pursue post-secondary education, your savings and income are not forfeited. There are lots of options for you to choose from.

Start talking about Post Secondary Learning Early

There are many ways to talk to even the youngest children about their future, and it can be done in a way that doesn’t leave them feeling pressured or stressed out.


For many children in their elementary years this is the perfect time to start laying the groundwork about their future. A recent study from Statistics Canada has shown youth who had access to an RESP were more likely to subsequently enroll in post-secondary studies than those who did not have an RESP.

Your Top 5 Education Savings
Questions, Answered

1. What is the projected cost of post-secondary education?

 To send your child to university, you’ll need about $71,000 for tuition, which doesn’t include room and board if they choose to go away. However, in an RESP your money can grow tax-free


This is one of the greatest things about RESPs, ANYONE can open one for your child. It can be parents, a grandparent, relatives, family friends, or godparents….so long as the child is a Canadian resident with a Social Insurance Number (SIN), anyone in their life can start an RESP in their name.

3. Are there any minimums, maximums or rules about contributing?

By opening an RESP you can start building a sky’s the limit future for your child starting with as low as around $10 a month and increasing as you so desire or are able. You can make monthly contributions, annual deposits, or a mix of both! The lifetime maximum you can contribute to child’s RESP is $50,000

4. Are there any tax benefits with an RESP?

RESP savings grow tax free. You don’t pay tax on any investment earnings as long as they stay in the RESP. That means your savings can grow faster. 

5. What are some things to consider when choosing an RESP provider?

Not all RESPs are created equal. Like any financial decision, you should compare different RESP providers to make the best choice for you and your child. Follow this step-by-step approach to ensure you make the right decision for you and your family.

Let’s Talk About Money, Education, and a “Sky’s the Limit” Future

Sometimes it’s hard to imagine the small child you have now graduating from high school. There are so many amazing adventures between now and then and lots to look forward to, including helping your child realize their full potential.


If you could do something today that would benefit them later – often in ways you can’t even calculate – you’d do it in a hot minute. Preparing our children for the future is a big part of raising happy kids to be happy adults. Providing them with the tools to make their dreams come true is possible. Learn more about opening an RESP.

Want more info?
We’re happy to chat!

Our friends at CST Consultants Inc., one of Canada’s largest Registered Education Savings Plan (RESP) providers, are ready to help!