alexjohn7
Registered User
Registered:
6/18/2021 | posted: 11/20/2021 at 7:21:59 AM ET
What is an RESP? It can be difficult to plan even one week in advance when you are caring for a newborn, let alone trying to save up enough money to send that little bundle of joy to college or university in 18 years. The Registered Education Savings Plan (RESP) is a powerful saving tool available to Canadian parents. Registered Education Savings Plans (RESPs) are investment accounts geared toward saving for a child's education. RESPs, like their tax-shelter cousins the RRSP and TFSA, allow their investments inside them to grow tax-free, meaning no taxes on capital gains and no income taxes on interest or dividend payments. There is one major advantage of RESPs, however, which is that the government will pay you to save by kicking in a grant of up to $7,200 over the life of the plan.
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