Saving for education should be an important componant of your financial plan, particularly when you consider that post-secondary education costs are increasing each year! Today, many people are realizing that a post-secondary education is one of the most valuable gifts that anyone can give to their child or grand child. It is a gift that can bring long-term benefits. In fact, the Statistics Canada 2001 Census “clearly showed that higher education is a gateway to higher earnings.”

Today, a student living at home pays an average of $41,000 to obtain a bachelor of arts degree. That amount is expected to reach $58,000 in less than two decades! It makes sense to start saving TODAY!

A Registered Education Savings Plan (RESP) is a government-approved plan for the purpose of providing post-secondary education funding for a designated beneficiary. Income earned within the plan is not taxed until it is withdrawn.

  • the annual contribution limit is now unlimited (after 2007) per beneficiary
  • the lifetime contribution limit is $50,000 per beneficiary (after 2007)
  • The Federal Government offers a Canada Education Savings Grant-see below for details
  • Students pay little or no tax on the funds that are withdrawn to pay for education.

The Canadian Education Savings Grant

The government encourages you to save in an RESP by offering the Canadian Education Savings Grant (CESG). The CESG will add 20% to the first $2,500 of your annual RESP contribution resulting in an extra $500 per year towards a child's education (up to a lifetime maximum of $7,200 per beneficiary).

There are limits

You can contribute up to a lifetime maximum of $50,000, with no annual limit.

With the costs of higher education increasing each year, early planning is essential. Call one of our Financial Advisors to book an appointment and get your child's RESP plan started! Contact Cory at or 204.926.3562 OR Pamela at or 204.926.3566.

What if?

What if your child does not want to attend a post-secondary institution? There are other ways to put that money to use. You could name another beneficiary, or transfer up to $50,000 of the funds into your RRSP (if you have enough unused contribution room)

For more information on the CESG, visit the RESP Government Website.

In order to set up an RESP for your child or grandchild who are 15 years of age or younger, you will need the following:

A S.I.N number for each child you wish to register, easily processed at any Service Canada location while you wait.


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