Why establish a Registered Education Savings Plan (RESP)?

Why establish a Registered Education Savings Plan (RESP)?

Cost of post-secondary education

In 2021-2022, the average annual undergraduate tuition for a full-time student was $6,693, compared to $4,917 in 2009-2010. Add in accommodation, food, transportation, books, computers, leisure, and the cost of a four-year postsecondary education can reach nearly $100,000.

Opening an RESP

  1. Get a Social Insurance Number (SIN) for your child.
  2. Contact an investment advisor at your local Caisse Alliance branch.

Two RESP plans to choose from

Individual plan

  • Single beneficiary
  • Anyone can contribute
  • A beneficiary can be of any age

Family plan

  • One or more beneficiaries
  • The contributor must be related by blood or adoption to beneficiaries
  • Beneficiaries must be under the age of 21 at the time of inclusion in the plan
  • Increased flexibility—grants may be reallocated from one beneficiary to another

Available grants

Canada Education Savings Grant (CESG)

All RESP beneficiaries under the age of 18 receive the Canada Education Savings Grant, administered
by the federal government*. The maximum grant is $600 per year and $7,200 over a lifetime.

*Some conditions apply.

Source: Statistics Canada – www.canada.com

Registered Education Savings Plan (RESP)

The Government of Canada will top up the RESP on the first $2,500 a year according to the following criteria:

Net family income Basic grant Additional grant on first $500 contributed
< $45,282 20% 20%
$45,282 to $90,563 20% 10%
> $90,563 20%


Canada Learning Bond (CLB)

This federal program is for children under 15 years of age from low-income families. If deemed eligible, you could receive an additional $500 upon opening the RESP and subsequent yearly additional payments of $100 per year, up to $2,000 per child.

What happens if my child does not pursue post-secondary education?

RESP income can be transferred to the subscriber’s RRSP (certain conditions apply).


Human. Available. Connected.

Mutual funds and related financial planning services are offered through Credential Asset Management Inc. Financial planning services are available only from advisors who hold financial planning accreditation from applicable regulatory authorities. The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This article is provided as a general source of information and should not be considered personal investment advice or a solicitation to buy or sell any mutual funds.


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