Registered Educational Savings Plans are a fantastic way of saving for your child's education. There are two great "bonuses" that the government is willing to chip in on-the Canada Learning Bond (CLB) and the Canada Education Savings Grant (CESG).
The government will contribute up to $2000 in the form of a CLB -$500 in the first year of opening the RESP, and then $100/yr for the next 15 years as long as the family is entitled to the National Child Benefit Supplement in each of those years -free money without having to contribute a cent!! They will also kick in up to 40% annually of CESG of the amount you put in -obviously, certain restrictions apply!
You can contribute any time- monthly, annually or sporadically but there are age limits so it's best to contact an advisor so that you are aware of how the rules will impact your investment.
There are many options for withdrawing the money-even if your child decides not to pursue secondary education. Please contact us for further details.