Who should invest in Registered Education Savings Plan

Anyone who has children or grandchildren planning to attend a post-secondary institution can take advantage of a Registered Education Savings Plan (RESP). There are two main types of RESPs: individual plans and family plans.

A family plan allows for more than one beneficiary, meaning it may be the best option if you have more than one child. Under a family plan, the children must be either related by blood or through adoption. An individual plan, meanwhile, has one beneficiary and anyone can make contributions.


It’s simple: An RESP can help you save for a child’s post-secondary education. And that’s becoming increasingly important: according to the Government of Canada, full-time students currently pay an average of $16,600 for post-secondary schooling per year. Over the course of a four-year program, that amounts to $66,400. And should a child decide to continue on to graduate school – such as a master’s program or law school – the amount will increase further.

The RESP is here to help. Through the Canada Education Savings Grant (CESG), the federal government will match 20% of the first $2,500 you save in your child’s RESP each year until the end of the calendar year they reach age 17. The maximum lifetime CESG is $7,200 per child. Overall, through the RESP you could set aside up to $50,000 per beneficiary.

Next Step

 Your decision should be made with the help of someone who really understands the product.