The cost of post-secondary education is rising and estimated to be around $55,000 per child. That’s a scary figure that can keep you up at night. But there is a way to save that will help you sleep. It is a registered education savings plan or RESP, which is a tax-deferred savings plan designed to help parents, grandparents and even kids save for post-secondary education.


Saving for education is cheaper and less stressful in the long run than borrowing for those costs. An RESP will give you peace of mind now and when high school graduation rolls around.


Why RESPs are a good idea:

  • The Canadian Education Savings Grant (CESG): eligible beneficiaries receive a 20% basic CESG on the first $2,500 in annual RESP contributions (up to $500 per year). Additional grants may be available based on family income.
  • You can collect unused CESG money from as far back as 1998 by making catch up payments (subject to an annual maximum).
  • Earnings and the CESG are tax-deferred until the money is withdrawn, and taxed in the hands of the beneficiary who will likely be in a low or no income tax bracket.
  • There are lots of options! RESPs can hold cash, term deposits, or other investments; there is no foreign content limit.
  • If the intended beneficiary does not attend post-secondary school, and there is no alternative beneficiary, simply withdraw your unused contributions. Transfer accumulated earnings directly to your or your spouse’s RRSP without triggering tax deductions (you must have the contribution room). Return the grant portion to the government.
  • Watch your money grow tax-sheltered inside the plan.
  • Use RESP savings to pay for tuition, books and living expenses. Most post-secondary schools qualify and some part-time studies also qualify.

What you need to know:

  • You can open an Individual RESP for anyone, or a Family RESP for several beneficiaries related to you by blood or adoption.
  • Beneficiaries need a social insurance number.
  • The lifetime contribution limit is $50,000; there is no annual limit.
  • The contribution deadline is December 31 each year.
  • You can change the beneficiary if the original beneficiary does not attend post-secondary school.

A Libro Coach or your financial planner can help you set up an RESP for your children. Meet with them today to meet the December 31 contribution deadline.

Compliments of Chris White, CFP

Chris White holds his Certified Financial Planner designation and works at Libro Financial Group’s North Waterloo branch. He can be reached at


Jennifer McCallum

Thank you so much for stopping by this page to get to know a bit more about me and why I started Parent Guide Inc. My business story started a way back in 2001... …after the birth of my first daughter, I realized that an "all-in-one" resource guide for parents was needed, and fast! I designed the New Parent Resource Guide to fill a gap in the community for busy parents like myself. The New Parent Resource Guide offers an A-Z of key contacts for parents, caregivers, service providers, and health care professionals.  Working with key businesses and organizations in the community, we have also compiled much-needed articles, tips, and charts to answer all your parenting questions. The latest addition to our family is the School Age Resource Guide to serve parents of children, 3 to 18 years!  This guide answers questions about: nutrition, bullying, curriculum, building self-esteem, and much more, as well as offering a full directory of local and national resources. The website offers an “all-in-one” spot for parents to connect, add their own blog, and find needed resources in their community.  It is a site that educates and entertains and if you can't find somthing just ASK me. I am here to serve YOU!  My hope is that you connect with our members, find comfort in their words, and share your own story. My goal is to see what I can do to help make life a bit easier for you.   You are why I do what I do! I can’t wait to get to know you!  Comment below to tell me about yourself – then start blogging so we can find out what makes you get up in the morning!  Check out my blog too and I am sure you will be surprised what gets me out of bed each day!!! Jennifer -  Mom and Publisher

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