Education Planning (RESP)
A Registered Education Savings Plan, or RESP, is a special savings plan to help you save for a child’s post-secondary education.
With the rising costs associated with sending a child to college or university, an RESP can really help because the government provides grants while the savings grow tax-deferred until withdrawn.
When the student withdraws the funds for educational purposes, the withdrawals are taxed in the student’s hands, typically at a lower rate. Also, RESP’s allow parents as well as grandparents to participate in the savings of a child’s education.