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Invest in Your Child's Future: Why RESPs Matter This Back-to-School Season


As summer days give way to the crisp air of fall and children head back to school, many parents are finding themselves thinking about the future. One of the most significant concerns for parents is how to financially support their children's education. While university may seem like a distant future, the reality is that educational costs are rising every year. One of the best ways to prepare for these impending expenses is by investing in a Registered Education Savings Plan (RESP). In the following paragraphs, we’ll delve into the key advantages of RESPs and why now is the best time to start one.

What is an RESP?

An RESP is a tax-sheltered investment account designed specifically for saving money for a child’s post-secondary education. Contributions to an RESP are not tax-deductible, but the money grows tax-free until the child enrolls in a qualifying educational program. At that time, the funds can be withdrawn with the child paying little to no tax, This is under the assumption that they will have little to no taxable income due to them being a student at the time of the withdrawal.

Different Types of RESP Accounts

When considering opening an RESP, it’s important to know that there are several types to choose from. Each comes with its own set of rules and benefits, allowing you to pick the one that best suits your family’s needs. Here are the primary types:

Individual Plans

An Individual RESP is the most straightforward type of plan. It allows for one beneficiary, and anyone can open the account—parents, grandparents, friends, etc. The beneficiary does not have to be related to the subscriber (the person who opens and contributes to the account).

Family Plans

Family RESPs are similar to individual plans, but they allow for multiple beneficiaries, all of whom must be related to the subscriber by blood or adoption. This could include siblings, half-siblings, or even cousins. Family plans offer the flexibility of allocating funds between different beneficiaries as needed, making it convenient for families with multiple children.

Group Plans

Group RESPs are a different beast altogether. These are usually offered by scholarship plan dealers and involve pooling your savings with those of other investors. Your child's ability to withdraw from this fund is often dependent on their age and the number of contributions made. These plans may have stricter rules and higher fees, but they also generally offer a more disciplined contribution schedule.

Understanding the different types of RESPs can help you make an informed decision tailored to your family’s needs. Whether you have one child or several, , there’s an RESP out there for you.

Advantages of an RESP

Tax-Free Growth

One of the major advantages of an RESP is the tax-free growth of your investments. This feature significantly maximizes your saving potential, allowing you to contribute less while still meeting your financial goals for your child’s education.

Government Grants

RESPs are supplemented by the Canada Education Savings Grant (CESG), where the government will match 20% of your contributions up to a $500 limit per year. This is essentially free money that can significantly boost your education savings fund.

• The CESG is available until the end of the calendar year when a child turns 17.

• The lifetime maximum that can be received from the CESG is $7,200 until the age of 17.


RESPs offer a wide array of investment options, including stocks, bonds, and mutual funds, allowing you to tailor your investment strategy based on your risk tolerance and time horizon.


Opening an RESP is simple and can be done at most financial institutions. Additionally, many plans have low minimum contribution requirements, making it an accessible option for families of all income levels.

Family Planning

One of the best features of an RESP is that it can be a family plan, meaning you can name multiple beneficiaries, all of whom can be children or grandchildren. This can make financial planning easier for families with more than one child.

Educational Support

RESPs can be used for a variety of educational paths, not just traditional four-year university programs. Whether your child chooses a college, trade school, or apprenticeship, the RESP can support them.

The last word

The back-to-school season is a timely reminder that your child's future is fast approaching. Planning for their educational needs is an investment in that future. An RESP offers an incredibly effective, flexible, and tax-efficient way to do just that. With the government grants available, there’s no better time than now to take action.

So as you prepare for the new school year by buying notebooks, pencils, and the latest must-have sneakers, consider taking a step that will have a long-lasting impact: open or contribute to an RESP for your child’s bright future. Click Here to schedule a no-obligation consultation, and take the first step toward turning your child's dreams into reality.

- Mitchell Cathcart, Marketing Assistant, Kondwelani Kalinda, Licensed Assistant & Financial Planning Associate and Grant White, Portfolio Manager at Endeavour Wealth Management with iA Private Wealth, an award-winning office as recognized by the Carson Group. Together, Endeavour Wealth Management provides comprehensive wealth management planning for business owners, professionals and individual families.

This information has been prepared by Mitchell Cathcart Marketing Assistant, Kondwelani Kalinda, Licensed Assistant& Financial Planning Associate and Grant White, Portfolio Manager for iA Private Wealth and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisor can open accounts only in the provinces in which they are registered.  

iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates.


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