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Stewart Financial Services
- Protecting Your Financial Health
Registered Education Savings Plan (RESP)
The spiraling cost of post-secondary school education has many parents concerned about whether they will be able to afford to send their children to college or university. A Registered Education Savings Plan (RESP) is an excellent way to start saving today for your children's education tomorrow. A Registered Education Savings Plan (RESP) is a registered savings plan that allows family and/or friends to contribute towards a child’s education. Contributions to the plan can grow tax-free over the life of the plan.
Contributions to an RESP may qualify for federal and provincial government grants. Your contributions and any grant will accumulate and grow tax-free in an RESP. When funds are withdrawn for tuition, only the growth and grant portion of the plan is taxable in the hands of the student(s), who will, in all likelihood, be in a low tax bracket.
Since 1990-91, the annual cost of university tuition has tripled to an average of $4,524 in 2007-08. When mandatory fees and room and board are included, the annual cost of a university education rises to $12,300 per year. |
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RESPs—are probably one of the best ways to save for your child's post-secondary education. Registered Education Savings Plans - specifically designed to help you save money for your children's education, this government program lets you save the money without tax, and you are eligible for a grant from the government.
Contact Stewart Financial Services for more information about RESPs and other Registered Investment opportunities to meet your current and future needs and lifestyle.