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Educate The Future Generations
Give your children the gift of a post-secondary education
Planning finances ahead is difficult for many people, and this task becomes even more stressful when it involves the future of one’s child. Luckily, you can ensure the success of your children by opening a Registered Education Savings Plan (RESP) for your son or daughter early on. At Walton Financial, we are happy to help you find the right type of RESP for your needs and establish flexible payment schedules to help you achieve your financial goals.
RESP Overview
Registered Education Savings Plan or RESP is a tax-advantaged savings account designed specifically for saving money for a child’s post-secondary education in the future. The plan is funded partially by the Canadian government through the Canada Education Savings Grant (CESG), and anyone is welcome to contribute to it (parents, grandparents, parents’ friends, neighbours, or complete strangers). Importantly, while in an RESP, the savings for a child’s education grow tax-free.
There are three entities involved in any RESP:How We Can Help
There are three types of Registered Education Savings Plans you can choose from:
Overview
Group plans can be set up for only one beneficiary, who does not have to be related to you. As compared to other types of RESPs, group plans tend to have more rules and restrictions. Here, the payment schedule is fixed, and you might incur penalties for missed payments.
With a group RESP, your contributions will go to a shared pool of earnings with other RESP subscribers who have children of the same age. Then, the funds will be invested in low-risk investments chosen by the group plan provider.
Opening an RESP for an important child in your life comes with several advantages:
Overview
Aside from certain limits, you are largely in charge of your own saving schedule. You can choose how much you want to contribute and on what schedule; you also get to decide how you wish to invest your funds.
Overview
With any Registered Education Savings Plan, the Canadian government will match 20% of your contributions, up to $2,500 per year. The lifetime maximum of the government match is $7,200.
Overview
Your RESP savings will accumulate tax-free until you withdraw the money. You are welcome to contribute up to a lifetime limit of $50,000 per beneficiary, which can be used up to 31 years after you first opened the account.
Overview
You are free to use your RESP savings for a broad range of expenses related to the post-secondary education of the beneficiary. This includes tuition, housing costs, and other types of expenses.
Start Your Journey
A post-secondary education can be expensive. Luckily, at Walton Financial, we can help you manage these costs successfully by opening a flexible and effective savings account early on.
With a Registered Education Savings Plan, you will be able to contribute up to $50,000 per child and receive an additional grant from the Canadian government of up to $7,200. When the time comes, your child will be able to pursue the post-secondary education of their dreams, without having to worry about taking on debt. Whether they choose to go to a college, a university, a trade school, or an apprenticeship program, all doors will be open!
EXPLORE YOUR OPTIONS ⟶Have Questions?
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