The birth of your child or grandchild is the best time to begin a Registered Education Savings Plan (RESP). Whether they decide to pursue higher education or not, at least the funds will be available.
A Registered Education Savings Plan is a wiser option than just putting money aside for education. Why? Because the government contributes to the savings plan. In fact, federal grants can total as much as $7200 for the entire length of the plan, depending on the amount invested. The amount is even higher in Quebec, with an additional $3600 being contributed.
Besides the government contribution, the funds in a Registered Education Savings Plan are tax sheltered, just like an RRSP.
Imagine putting just $100 per month into an RESP, starting at the birth of your child. By the time your child is ready to go to university, you will have saved over $45,000 toward his or her post secondary education.
Desjardins Financial Security helps families establish Registered Education Savings Plans every day. One of the most common questions we are asked is, “What if my child doesn’t end up pursuing post-secondary studies?” A Desjardins Financial Security RESP is very flexible. You can transfer the funds to another child in the family without penalty. You could even transfer the funds to an RRSP.
Getting a post-secondary education can be an enriching experience. And it can be even more enriching when the funds are readily available in a Registered Education Savings Plan.