RESP in Canada: A Parent’s Guide to Education Savings

An RESP is a Registered Education Savings Plan. Families use it to save for a child’s education after high school.

In plain English: This guide explains the main ideas. Rules, prices and tax treatment can change. Check official documents before making a decision.

Who the savings are for

The beneficiary is the person whose education the plan is meant to help pay for.

Government grants

Some families qualify for government money added to the plan. Rules and limits apply.

Your contributions

RESP contributions are generally not tax-deductible.

Lifetime limit

There is a lifetime contribution limit for each beneficiary across their RESPs.

Family plans

Some plans can include more than one eligible related child. Ask about the rules.

Choosing investments

Money needed soon may call for a different investment choice than money needed many years from now.

Fees and restrictions

Some plans charge fees or have strict payment rules. Read all documents before signing.

Paying for school

Withdrawals have different parts with different tax rules.

If plans change

Ask what happens if the child does not attend eligible schooling.

Review as children grow

Education goals, costs and family finances may change.

Questions worth asking

• What is my main goal?
• What will it cost?
• What are the rules and risks?
• What could change later?
• Who can explain the details?

Visit the Financial Learning Centre or contact Ali Aftab to learn more. This is general education, not personal insurance, investment, legal or tax advice.