An RESP is an easy and practical Christmas gift from grandparents or aunts and uncles.
Are you starting to think about what to buy your child for Christmas this year? Are grandparents or aunts and uncles wondering what to buy your child, teen or tween? How about a contribution to their RESP (Registered Education Savings Plan)? RESPs are a savings product set up and regulated by the Government of Canada, where the savings are to be withdrawn by a child when they attend an approved post-secondary institution. The most amazing thing about an RESP is that they can receive grants of up to 20% of your deposits/ contributions. (20% of each deposit up to $2500.00 until the child is 17 years old and a lifetime maximum grant of $7200.00)
Post-secondary education has become astronomically expensive. It is not unheard of to think about budgeting up to $20 000.00/year for a 4 year under-graduate degree in Canada (including tuition, books and living expenses) for a potential student attending university in 2025. I am sure most of us would like to see our children graduate without being saddled with student debt and RESPs are a great way to send your child off to their future learning debt-free. As with all types of savings, the sooner you start the better. But, trust me– as a former university student – something is better than nothing at all.