With today's changing needs in post-secondary education, it has become increasingly important to save for a child's future.  Fortunately, the Government of Canada has designed a program to help you.  It is called a Registered Education Savings Plan (RESP).

Basically, an RESP is an education savings account registered with the Government of Canada that allows you to save for a child's education after high school.  This money will grow tax-free until the child is ready to go full-time to college, university, or any other eligible post-secondary educational institution.

Additionally, the child may be eligible to receive grants and subsidies from the government through the Canadian Education Savings Grant, Canada Learning Bond and the British Columbia Training and Education Savings Grant (BCTESG).

Eligible subscribers such as parents and grandparents, may contribute to an RESP.  The contributions are not tax deductible but any income earned by money held within an RESP is tax-deferred.  When it becomes time to withdraw the money for qualified school expenses, any accumulated interest or grant money withdrawn becomes taxable as income for the student.  However, because the student has little other income, he or she may pay little or no tax on the RESP income.

There's a lot to know about RESPs.  For more information or to get started, contact our Licensed Financial Advisor & Member of the Financial Advisors Association of Canada (Advocis®), Jason Truscott at Growth Financial Corp.

You can also find more detailed information about education planning and student aid on this Government of Canada website page. 

For more information regarding RESP's from the Government of Canada, click here.