The RESP is specially designed to accumulate amounts for a child’s post-secondary studies.Try out our RESP calculator Find an advisor
The money accumulated in an RESP is meant to cover tuition fees and all study-related financial expenses, including housing, school supplies, food and transportation fees. The investment income from an RESP accumulates in a tax shelter as long as it’s not withdrawn from the plan.
The federal government has created the Canada Education Savings Grant to encourage parents to invest in their children’s post-secondary education. This grant corresponds to 20% of the annual contributions paid into an RESP, up to $500 per year, per beneficiary. The maximum grant paid per beneficiary cannot exceed $7,200 for life.