Getting the Most from Your RESP
A Registered Education Savings Plan (RESP) is an excellent way to save for a child’s post-secondary education. Anyone can open an RESP and anyone can contribute, up to a lifetime total of $50,000 per child.
While the contributions to this education fund are not tax deductible, any investment income that is earned is not taxed until it is withdrawn. In addition to tax-deferred growth, the Canadian government automatically gives you 20% on the first $2,500 placed in the child’s RESP each year—that’s $500.00 per year up to a lifetime maximum of $7,200.
Back-to-school time is just around the corner for many post-secondary students. But this year, some Canadian students will be receiving even more money. The best part is that they don’t have to pay it back. It’s basically free money.
Recently, the Government of Canada has announced an increase on the amounts of Canada Student Grant that students
from low and middle-income families are entitled to receive. For students who are most in need, the amounts can
increase by as much as 50% for the upcoming 2016-2017 academic school year. More specifically, the grant increases
break down as follows: