Registered Education Savings Plans

Education costs are increasing every year and there is no reason to expect a decline. Many studies predict that the cost of a four year university undergraduate degree could be upwards of $100,000, after all expenses, in the very near future. Many post-grad programs already cost more. Almost every form of employment requires some form of post-secondary education or specialized training.

So - the government wants to give you money to make it easier for you to help your children attain post-secondary educations without going into massive debt.

How do Registered Education Savings Plans (RESPs) work?

  • Canada Education Savings Grant: The government will give you $500 (or 20%) for every $2,500 you contribute per year per child. Contribute the max for 10 years and that means you get $5,000 free money plus the interest. Based on your net family income, you may be eligible for an additional 20% on the first $500 of annual RESP contributions. To save $2,500 per year, you need to find a few pennies over $200 per month. Your Coach will help. Even if you don't hit the max number, the free money still adds up. The lifetime maximum you can receive is $7,200.
  • Canada Learning Bond: You may be eligible for the Canada Learning Bond as well. This bond is for families who are eligible to receive the National Child Benefit. The maximum amount available is $2,000.
  • Visit www.canada.ca and follow the links to benefits/education and training for more details on available government grants.
  • An RESP is tax-deferred, not tax-deductible. The beneficiary must be a Canadian resident.
  • The maximum lifetime contribution per beneficiary is $50,000.
  • Annual contribution deadline is December 31.

A Libro Coach is always available to provide you with advice to build an effective registered education savings plan. We can help you choose the right investments and will review your plan with you on a regular basis to ensure it remains in line with your goals, time horizon and risk tolerance.

*Credential disclosure and mutual funds disclaimer