A Registered Education Savings Plan (RESP) is a special savings plan that helps you save for a child’s education after high school. It’s a smart and advantageous way to plan ahead and save for your child’s future. Here are 5 excellent reasons to consider starting an RESP for your child.

1 The cost of higher learning is getting higher and higher.

An RESP is a smart way to be proactive and save money for your child’s future education so that when they’re ready to study, you’ll be ready to help pay for it. The earlier you start the better because it gives your investment time to grow. It’s a great way to ensure that by the time your child graduates from high school, you’ll be able to help provide them with the freedom to choose the university or program of their choice.

Some key numbers at a glance:

2 An RESP allows your child to collect $7,200 or more in grants from the government

Matching grant programs from the federal government and some provincial governments can add up to 20% or more to savings in RESPs.

3 Many people can pitch in and help out.

Parents, grandparents, other relatives and friends can open an RESP for your child and make contributions to support your child’s future.

4 Less education means less opportunity for success.

A recent Statistics Canada report shows that youth with access to an RESP are more likely to continue their education than those with no RESP3. Today’s job market requires degrees and specialized skills acquired through post-secondary education, and it’s only going to get more competitive.

5 Avoid going into debt.

With the cost of education rising every year, parents often find themselves wondering whether they should be saving or borrowing. The problem with borrowing is that can cost a lot more in the long run and can also become a burden inherited by your child.

There’s no better feeling than knowing you can give your child an education.

The CST INSPIRE A DREAM contest gives you an opportunity to start saving. With a grand total of $30,000 in CST RESPs to be won. You can enter today to win one of 12 prizes of $2,500 towards a CST RESP this year.

Enter Contest 1www.cst.org/en/about-resps/why-save-resp
2www150.statcan.gc.ca/n1/daily-quotidien/200921/dq200921b-eng.htm
3www150.statcan.gc.ca/n1/pub/11f0019m/11f0019m2020012-eng.htm