One of the main benefits of RESP accounts is the federal Canadian Educational Savings Grant (CESG). This grant is 20% of any eligible contributions in an RESP account.
How the RESP Grant System Works
Let’s say you open an RESP account for your bouncing new baby and contribute $1,000 into the account. Your financial institution will send the account and contribution information to the Canadian government for grant approval. If the grant is approved, the institution receives the grant money and deposits it into your account. Read More…
I have 4 kids and each have an RESP in their name. We had some problems in 2009 so the ability to carry over prior years has been handy.
I wasn’t so lucky. My parents dont have the money and i am going to be done high school late next month. It’s okay though because i was thinking of going to work in a shop anyway.
Actually that $50k isnt totally tax free but pretty close to it.
doug, it will work for any and all dependents if they are 17 and younger.
20% by the government isn’t that much. I remember back in 05 it was 10% and still think it should be at least 30 to compensate for inflation.
I must be the only person on the planet that has never heard about RESPs. Seems interesting but i have no kids. Does it work on non-family members too?
I’ve been making use of this for some time now. Its been a life saver because when i was young we just hoped my father wasn’t boozing our savings up at the local pub.
Actually there is an error in example 2. It is actually $2000 for 2008 not $2500.
Very good read. I was looking for something like this because i have a newborn on the way and wanted to get things in order.
Tax free $50,000 maximum lifetime contributions for post-secondary studies is interesting.