Quick answer
A Registered Education Savings Plan (RESP) is a Canadian education savings plan that helps families save for a child’s post-secondary education. A subscriber opens the RESP for a beneficiary, contributes money over time, and the savings may grow through investment returns and government education savings incentives, such as the Canada Education Savings Grant (CESG) or the Canada Learning Bond (CLB), depending on eligibility.
Key facts about RESPs
• RESP stands for Registered Education Savings Plan.
• An RESP is used to save for eligible post-secondary education.
• The subscriber owns and contributes to the plan.
• The beneficiary is the future student the plan is intended to support.
• Government education savings incentives may be available, depending on eligibility.
• There is no annual RESP contribution limit, but there is a $50,000 lifetime contribution limit per beneficiary.
• RESP contributions are not tax deductible.
Who is an RESP for?
An RESP is typically used by families saving for a child’s future education.
Common contributors include:
• Parents or guardians
• Grandparents
• Other family members
The beneficiary is usually a child who will use the funds for post-secondary education.
How does an RESP work?
An RESP usually works in four steps:
| 1. A subscriber opens the RESP and names a beneficiary. |
| 2. The subscriber contributes money to the plan. |
| 3. The savings may grow through investments and eligible government incentives. |
| 4. When the beneficiary attends an eligible post-secondary program, RESP funds may be withdrawn to help pay for education. |
Why does an RESP matter?
An RESP matters because it brings together personal contributions, possible government education savings incentives, and long-term investment growth. As the child gets closer to post-secondary school, the investment strategy may need to shift from growth toward protecting the savings that will soon be used.
How does RESP investing change over time?
RESP planning is not just about saving, it also involves how the money is invested over time.
• Early years: focus on long-term growth.
• Later years: shift toward protecting savings as school approaches.
The Embark Student Plan uses a GlidePath approach designed to automatically adjust investment risk as a child gets closer to post-secondary education.
Frequently Asked Questions
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