RESP

A Registered Education Savings Plan (RESP) is a tax-deferred education savings vehicle by which the federal government allows a parent or grandparent to save money for a child’s post-secondary education. RESPs offer the benefit of increased savings as a result of the Canada Education Savings Grant (CESG) program. The government will match 20 per cent of what the subscriber contributes each year to the beneficiary, up to a maximum of $500 per year (the grant attracted from a $2,500 contribution).