Your Money Matters

November 2012 Issue


Registered Education Savings Plan

Benefits of Having an RESP – Save Early, Earn More

With the help of an RESP, you, as a parent, friend or family member, can start putting aside money for a child’s post-secondary education. Your contributions can grow surprisingly quickly when you use this special savings account, as the Government of Canada offers the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB) exclusive to RESP subscribers.

As of 2010, Ontario’s CESG participation was at 46.1% while the Canadian average was only at 42.8%*. This means that just under half of the population is taking advantage of the grant that the government is offering. Every RESP subscriber is eligible for the CESG no matter what their family income is. While some subscribers in lower income brackets qualify for the Canada Learning Bond as well.

Worried about your child not going to school? Don’t worry, the money is not lost. You can transfer the RESP to one of your other children or family members. If ever that child has received the lifetime CESG amount, which is $7,200, the grant must be returned but the contributions that you have made can stay within the RESP.

There are lots of different investments options for RESPs. We offer RESPs within GICs, Segregated Funds as well as Mutual Funds which gives you many options depending on the time horizon as well as the risk you would like to take. Please contact us for more information.

*Statistics from Statistic Canada Census


Theresa Wever and the Money Concepts Team

Commissions, trailing commissions, management fee and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Insurance products provided through multiple insurance carriers. Mutual fund products provided through Investia Financial Services Inc.