Registered Education Savings Plan (RESP)

Are you taking advantage of the Registered Education Savings Plan (RESP)

The RESP is the Registered Education Savings Plan. This is a savings account for your child’s education that is registered with the Canadian Government. There’s free money available for your child’s education that you may not be taking advantage of.

The RESP is a great way to start saving for your child’s future. We all know that the price for secondary education continues to rise and the need to start saving now is all the more important. If you are unaware, there is free money from the government waiting for you via the Canada Learning Bond. Note that if your child was born on or after January 1, 2004, and you also are eligible for the National Child Benefit Supplement, you might be able get up to $2,000 for your child.

What is the Canada Learning Bond?

The Canada Learning Bond is a contribution that’s compensated right into an eligible RESP. This is available even if you do not contribute any funds into the account yourself.

First the CEST Canada Education Savings Grant is money the Canadian Government will add to your child’s RESP.

First the basic Canada education savings grant will give up to twenty percent on each dollar for the first $2500 each year that is saved into the RESP. Also dependent on your net family income, you may be able to receive 10% or 20% more on each dollar for the first $500 each year.

Deposits can be made into the RESP until 31 years after it was first opened.

So what happens to the money if it is not used, or the RESP expires or closes?

The money from the CESP or the Canada Learning Bond will be returned to the Canadian Government, and all other money will be then returned to the individuals that originally deposited the money.

Note that an RESP account can stay open for up to 36 years. So if your child does not choose to seek further education right after high school, there will still be a time period  where the money will still be available, and hopefully they will take advantage of it.

There’s no contribution limit per year and the Canadian government will add a grant of up to a max amount of $7,200. The lifetime contribution limit is $50,000.

While they are not the most user friendly for making changes on a regular basis such as with a traditional savings account, they should be taken advantage. There are many different plans available where you can at least start to save for your child’s further education.

Registered Education Savings Plan (RESP) and Bankruptcy Notice

PLEASE NOTE:  These assets are NOT protected if you file a bankruptcy.  They are property of your bankruptcy estate and are subject to seizure by the Trustee upon filing an assignment in bankruptcy.  The Trustee will explain your options.

Additional Research Information for RESP and CESP

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt and live in the Toronto area, call us at 416-498-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

Share This!

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on pinterest

Ready to live debt free?

The best decision I've made was to contact David Sklar & Associates, they are experts in this matters and also have dedicated Licensed Counsellors that provide the best customer support, like Rhoda Lewis, who I highly recommend. She worked tirelessly on my case, explaining ever detail to me willingly. She demonstrates a true interest in her clients. I appreciate how she patiently walked me through what to do, step by step. I now have control over my finances, as a result my life is much more peaceful and I can focus on what matters. Thank you!
Nilda H.
20:18 16 Jun 22
Very helpful and friendly! I am more than satisfied with my experience here. And more than happy with the outcome! Would definitely recommend .
Peggy Bulger
15:10 14 Jun 22
Jerry at David SKLAR helped me thoroughly understand my options and made me feel at ease. If you are looking at this type of service/help, I 100% recommend you give them a call.
Colleen H
12:50 14 Jun 22
Rhoda is a wonderful person, She help me and guided me throughout the process. I couldn’t do it without her support and expertise. Now I can start fresh and full of hope of a better life ahead of me.
ariezel erandio
21:33 06 Jun 22
The service I recieved from David Sklar and Associates was great. I was able to meet with Christin Sylver. She is kind, understanding and, professional. She was able to answer all the quesions that I had regarding my debt. At the end of our meetings, I felt that there is a heavy burden lifted from my shoulders. I recommend Chistine to anyone who is looking into debt relief.
Aliya H
12:11 04 Jun 22
Jerry is a very patient person, he answered all my questions and made this experience so smooth and easy for me. I was not sure what to expect but dealing with him made me feel so much better. He sure knows what he is doing and how to put people at ease for sure (should have done this long ago). I recommend him to anyone I am so glad I had him on my side and now to do my part. Thanks Jerry ur greatPattie
Patty Murphy
21:34 18 May 22
Rhoda Lewis helped me achieve a fresh start two and half years ago! She was very professional with a very warm, caring personality! I emailed her today with a question and she responded quickly. She's great at her chosen profession!!
Debbie Livingston
01:24 11 May 22
Nothing but good things to say about Jackie. She was so nice and so understand and everything was so quick and easy. In a matter of a week, there was the solution that I never thought was possible. Thank you so very much for everything that you have done. ❤️❤️❤️
Cassandra Keenan
21:05 10 May 22
I was in a lot of debt and stress, Jackie Stanley with David Sklar & Associates was very professional, and extremely helpful with getting out of debt. I should of did this sooner, they take the all the weight and stress of a persons shoulders, amazing team at David Sklar & Associates!!
Hubert Z
03:08 10 May 22
Jackie helped me out during a really tough time and she made the entire process very easy and painless. I highly recommend reaching out to her if you find yourself in any financial trouble. You won’t be disappointed!
prettylush 13
02:42 10 May 22
js_loader