You want the children in your life to have the most opportunities possible. The reality is having a post-secondary education is becoming more necessary every day—and it’s not getting any cheaper, either. That’s why having a smart education savings plan is so important.

Enter the Registered Education Savings Plan (RESP). It’s the smart way to save for post-secondary education.

1) They’re not just for university.

RESPs give a child the freedom to pursue the type of education their dream job requires, whether that’s university, college, trade school, or even an international academy.

2) Grants give your savings a boost.

It takes a village to raise a child, and government grants are there to lend a helping hand. The Canada Education Savings Grant matches 20% of the money you put into an RESP, up to $500 a year to a lifetime limit of $7,200 per child. And there are other grants your child may qualify for, too.

3) Say hello to tax-free growth.

While your savings are in the RESP, they grow without being taxed. When the funds are withdrawn, the income is taxed in the hands of the student.  And since students generally don’t make much money, they will pay little to no tax.

4) You decide what works best.

There are different types of RESPs.  You choose the type of plan that best suits your needs. You’re free to decide how much and how often you’d like contribute.

5) You can help any child reach her or his dreams.

Have a godson or niece you want to save for? You can open an RESP for a special child in your life who may not be a blood relative.

6) A plan with built-in patience.

Sometimes it takes a little longer for a child to figure out their future. RESPs can stay open for up to 36 years, so they can take their time deciding what they want to study.

7) No post-secondary? No problem.

If your child decides not to pursue post-secondary education, you have plenty of options. You can transfer the plan to another child, or withdraw your contributions and transfer the income tax-free to deposit into an RRSP. Certain conditions apply.

Convinced an RESP is right for you? Check out our CST Spark Education Portfolios to see how we’re making RESPs digitally accessible and easy-to-use.


CST Spark Education Portfolios are sold only by Prospectus.

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