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4. > Paying for post-secondary education

Registered education savings plans: Save for a child’s post-secondary education

An RESP is an account registered with the Government of Canada to help you save for a child's post-secondary education. Some key features of RESPs:

• Anyone can open an RESP for a child - parents, grandparents, guardians, and other relatives and friends.
  
  
• When you contribute to an RESP you become eligible for government grants that can amount to thousands of dollars of free money towards a child’s post-secondary education.
  
  
• Money in the RESP grows tax free.
  
  
• You can open an RESP for a child as soon as they are born (if both you and your child have a (Social Insurance Number)
  
  
• there are no annual contributions limits to RESPs but there is a lifetime limit of $50,000 per child
  
  
• a child can be named the beneficiary of more than one RESP. For example parents and grandparents could each open an RESP for the same child; however, the combined total of the two RESPs could not be more than $50,000.
  
  
• you can open an RESP at most financial institutions.

If you choose to open an RESP, you should choose your RESP provider and the type of RESP carefully to make sure you find the one that best suits your needs.  Here is a list of questions you should ask before you open an RESP.

Try to open the RESP as soon as possible after your child is born so that you can take full advantage of government grants.

• Find out what happens to your RESP savings if a child doesn’t pursue post-secondary studies
  
  
• For more information on RESPs see our tip sheet Save for your child’s education with an RESP

Other savings options

Another option to help you save for your child’s post-secondary education is a Tax-Free Savings Account (TFSA).  However, with a TFSA, you aren’t eligible for the government grants (that can amount to thousands of dollars) that you are with RESPs.

If you’ve reached the maximum value of the government grants that you are eligible for with an RESP, then a TFSA could be a good alternative to putting money away for your children’s education.

Other Helpful Links

• The benefit of saving early for a child's post-secondary education
• Continuing education: going back to school as an adult
• Tax deductions and tax credits for students

Related Resources

Date Modified:

2012-04-25