You’re entitled to government grants.

By opening an RESP, your child gets access to federal government grants like the Canada Education Savings Grant (CESG) and some provincial government grants (depending on where you live). Only an RESP provides this access, you can’t get grants if you’re saving for their education in a regular savings account or Tax-Free Savings Account (TFSA).

Your money grows tax free.

An RESP offers you three distinct tax advantages. First, the investment income earned on your contributions grows tax-free within the plan. Second, the government grants also earn tax-free investment income within the plan. And lastly, payments from the plan are taxable in your child’s name, not yours. Since students tend to have little or no annual income, little or no tax is payable when it’s time to withdraw the RESP.

You’ll have peace of mind.

You can enjoy the sense of pride and relief that comes with knowing that when your child graduates from high school and is ready to pursue post-secondary education, you’ll be ready to help pay for it.

Thanks to an RESP your child’s future will profit from the wise decision you made in the past.