RESP (Registered Education Savings Plan)

A Registered Education Savings Plan (RESP) is a registered savings plan designed to help you save for your child’s post-secondary education, such as university, college, or trade school.

Contributions to an RESP are not tax-deductible, but the investment income earned within the RESP grows tax-free. The government also offers grants, such as the Canada Education Savings Grant (CESG), which can boost your RESP savings.

When your child enrolls in post-secondary education, you can withdraw funds from the RESP to help pay for tuition, books, and other expenses. It is important to plan what to do if your child doesn’t pursue post-secondary education.

• Related Terms: Education Savings, Investment, Tax-Sheltered, CESG, Education Funding