Invest in Your Child’s Future with an RESP

Secure your child’s educational journey with a Registered Education Savings Plan (RESP). At Live Debt Free, we understand the importance of planning ahead. An RESP is a powerful tool that allows you to save for your child’s post-secondary education, ensuring they have the financial support needed to pursue their dreams.

What is an RESP?

A Registered Education Savings Plan (RESP) is a tax-advantaged savings account designed to help families save for their children’s post-secondary education. Contributions to an RESP grow tax-free, and the Canadian government offers additional incentives to boost your savings. 

Key Benefits of an RESP

• Government Grants: The Canada Education Savings Grant (CESG) matches 20% of your annual contributions, up to a maximum of $500 per year and a lifetime maximum of $7,200 per child. 

• Additional Support for Low-Income Families: Eligible families may receive the Canada Learning Bond (CLB), which provides up to $2,000 per child, without requiring personal contributions. 

• Tax-Deferred Growth: Investments within an RESP grow tax-free until withdrawal, maximizing the growth potential of your savings. 

• Flexible Use of Funds: RESP funds can be used for various educational expenses, including tuition, books, and living costs, at universities, colleges, trade schools, and apprenticeship programs. 

• Contribution Flexibility: There is no annual contribution limit, and the lifetime maximum contribution per beneficiary is $50,000.

How to Get Started

Obtain Social Insurance Numbers (SINs): You’ll need SINs for both the subscriber (you) and the beneficiary (your child).

Choose an RESP Provider: Select a financial institution or advisor that offers RESP accounts.

Open the Account: Set up the RESP and name your child as the beneficiary.

Apply for Government Grants: Your RESP provider can assist you in applying for the CESG and CLB.

Start Contributing: Make regular contributions to build your child’s education fund over time.

Why Choose Live Debt Free?

At Live Debt Free, we’re committed to helping you navigate the complexities of financial planning. Our experts provide personalized guidance to ensure your RESP aligns with your family’s goals, maximizing the benefits available to you.

Take the First Step Today

Investing in an RESP is an investment in your child’s future. Contact Live Debt Free to learn more about how we can assist you in setting up and managing an RESP that meets your needs.