The Benefits of Opening an RESP This Holiday Season

An RESP Makes the Perfect Holiday Gift

efundmeThe holidays are just around the corner, and for most people that means hitting the crowded malls. If you’re looking for a great gift idea for your new child, niece, nephew, or grandchild, skip the toys and gift them a Registered Education Savings Plan (RESP).

An RESP is a tax-deferred savings plan that helps you save for a child’s post-secondary education. It’s a meaningful gift that’s easy to start and easy to contribute to on birthdays, graduation, Christmas, or other significant holidays or milestones.

With an RESP you, or anyone else, can make regular contributions throughout the year; up to $2,500 annually, up to a lifetime maximum of $50,000. The money grows over time tax free, until the beneficiary starts to take it out.

When an RESP is opened, the parents can apply for two separate grant programs: The Canada Educations Savings Grant (CESG) and the Canada Learning Bond (CLB).

Through these two grants offered by the Government of Canada will help fund the child’s post-secondary education. Through the CESG, the Canadian government matches 20% of the annual RESP contributions, up to a maximum of $500.00. The lifetime maximum of a CESG is $7,200 per child.1

The Canada Learning Bond (CLB) is free money that the Government of Canada deposits directly into the child’s RESP account. The $500.00 bond is available for children who come from families that receive the National Child Benefit Supplement.2

The recipient could also receive an extra $100.00 annually until the calendar year in which the recipient turns 15, as long as you continue to receive the National Child Benefit Supplement. Together with the $500.00 bond, the CLB can reach up to $2,000.

Whether you’re a parent, grandparent, relative, or family friend, it’s easy to open and contribute to an RESP. All you need is a Social Insurance Number (SIN) and the SIN for the beneficiary or beneficiaries you’re opening the RESP for.

Global eFundMe Program: The Best Gift for Your Child!

This holiday season, Global RESP Corporation (GRESP) wants to make it even easier to say “YES!” to a gift of education. Global eFundMe is an online RESP gifting program that uses a crowdfunding platform to raise money for, and grow, your child’s RESP.

And it’s as easy as 1-2-3. Simply contact GRESP and create a Global eFundMe campaign; share your campaign with family and friends on social media, through e-mail, or SMS; and receive the contributions at the end of your holiday campaign when the funds are deposited into your RESP.

With Global eFundMe you can:

  • Promote your campaign through online channels to anyone, anywhere, anytime.
  • Raise contributions right away
  • Watch video tutorials, receive social media advice, and campaign incentives
  • Gain access to GRESPs two flexible scholarship plans with the lowest fees and no minimum plan contributions

GRESP Makes the Gift of Education Easy This Holiday Season

Opening an RESP in your child’s or a friend’s name is the easiest way to ease the financial burden of a post-secondary education and set them up for academic success.  GRESP has made it even easier this holiday season with their Global eFundMe program.

Why open an RESP with GRESP? GRESP is a leading provider of RESPs in Canada with offices in British Columbia, Alberta, Ontario, and Quebec, and hundreds of independent representatives across the country.

What sets us apart? GRESP dealing Representatives specialize exclusively in RESPs. On top of that, GRESP is one of the only companies that administer all provincial and federal grants available.

GRESP offers its clients a choice of two scholarship plans that provide more innovative planning and fee options:

  • The Legacy Education Savings Plan (LESP) is designed for clients looking to maximize their education savings investment and prefer a structured, disciplined approach to investing and saving.
  • The Advanced Education Savings Plan (AESP) is for families that are committed to saving for their children’s education but are looking for a more flexible contribution schedule, and no upfront sale charges.

To learn how you can set up you own Global eFundMe campaign today, visit our eFundMe information page.

Sources:

1.         “Canada Education Savings Grant – Overview,” Government of Canada, last accessed November 18, 2016; http://www.esdc.gc.ca/en/student_grants/cesg.page.

2.         “Canada Learning Bond,” Government of Canada, last accessed November 18, 2016; http://www.esdc.gc.ca/en/post_secondary/cost.page.