Registered Education Savings Plan
A registered education savings plan (RESP) is a tax deferral plan designed to help save for post-secondary education. In 1998, the government introduced the Canada Education Savings Grant (CESG) that contributes up to $7,200 directly into an RESP. But what if your child was eight years old when this grant was introduced? How much of the grant will he or she be entitled to?
The CESG has been accumulating since 1998 whether or not a child has an RESP. Therefore, your child will currently have the full $7,200 of grant room available.
If you open an RESP today and contribute $5,000 (the maximum amount) each year for seven years, the plan will receive grants totalling $7,200. As you can see, it's never too late to start an education savings program and take advantage of the Canada Education Savings Grant.
For more information, visit RESP Information Centre