RESP

RESP

For those looking to save for a child’s future education, a Registered Education Savings Plan (RESP) is a great option. This plan allows anyone to contribute and in some provinces, the government will match up to 20% of contributions. This means that for every dollar invested, an extra 20 cents will be added by the government. RESP savings can also be invested in various options, such as mutual funds, stocks, and bonds, to help grow the savings over time. It’s a smart way to invest in a child’s future education.

Registered Education Savings Plan (RESP)

A Registered Education Savings Plan (RESP) is an ideal way for parents to save for their child’s future post-secondary educational expenses. Contributions and any income earned on those contributions are paid in the form of educational assistance funds to the beneficiaries, while the initial contributions they receive do not need to be included in their income. All funds accumulated in this account are tax-free until withdrawn, which can be used to cover tuition fees, school supplies, food, travel and residence expenses. The promoter usually takes charge of distributing the contributions