Plan for Your Child’s Education

Support your child’s future by opening a Registered Education Savings Plan (RESP) with Quantum Financial Planning. These plans not only offer tax-deferred growth but are also eligible for government assistance with the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB). The maximum lifetime contribution of your RESP is $50,000.

With Quantum Financial Planning, you have plenty of investment options and fund choices including savings, income, balanced and growth. Keep in mind you can increase or decrease your contributions and switch your funds according to your risk tolerance and the age of the beneficiary. Our skilled GTA financial advisors will personalize your experience and make sure you understand all of your options. Experts have predicted that the cost of post-secondary education for 4 years will be over $100,000 by the year 2020. It’s time to start saving now.

We’ve included answers to some common questions below. If you have other questions or concerns, we encourage you to make an appointment. You might also find the RESP checklist helpful.

Q: What is the Canada Education Savings Grant (CESG)?

A: This is money provided by the government of Canada to your child’s RESP. The basic CESG provides 20% on every dollar of the first $2,500 you contribute each year (maximum of $500). The additional CESG provides an extra 10% to 20% on every dollar of the first $500 you contribute each year and is dependent on your family’s income.

Q: How does the Canada Learning Bond impact my RESP?

A: The Canada Learning Bond (CLB) encourages low-income families to contribute to a RESP by providing an additional $500 when the plan is opened and $100 for each year the beneficiary is eligible (up to the age of 15). You can also receive $25 to help cover the cost of opening a RESP. The maximum benefit is $2,000. To be eligible, your family must receive the National Child Benefit Supplement.

Q: How does the tax-deferred growth work?

A: The RESP is a tax sheltered savings plan set up for your child’s post-secondary education. The growth and CESG contribution are taxed on withdrawals at the beneficiary’s tax rate. Since the beneficiary is typically a student, the rate is typically much lower.