A Registered Education Savings Plan is a special plan in which money grows tax-free until it is withdrawn for a post-secondary education. A subscriber, such as a parent, aunt, uncle or grandparent makes contributions on behalf of one or more beneficiaries (a child) named in the plan.
Buying RESP’s
In todays society our children’s education is essential for us to ensure they will be successful. As Parents we are responsible to ensure that our children’s dreams are able to come true. Although, this task may be pricey in the end our government has provided an excellent solution. Parents can make small monthly contributions and take advantage of government grants until the child has reached the age of 17. At that time they are able to withdraw the amount and use this for their post secondary education.
RESP’s should be considered at any-time prior to the age of 15 years old if you are unable to provide the tuition fee in lump-sum as they come due. thus, taking advantage of the government grants and any financial stress of providing lump sum payments.
RESP’s are based on Children going to Post-Secondary Education. In the event the child does not wish to proceed with these goals the Government grants will not be honoured. Although, some may be transferrable to a second child in the event the first does not wish to pursue with post secondary education.