What is a RESP?

A Registered Education Savings Plan (RESP) allows parents and guardians to accumulate the necessary funds to finance a child’s post-secondary education. The federal government allows you to accumulate investment income on a tax-sheltered basis until the funds are withdrawn.

There are two types of RESP plans – individual and family.

  • An Individual Plan is a type of RESP where there is only one beneficiary. Contributions must be made before the 31st anniversary of the plan.
  • A Family Plan has one or more beneficiaries who must be related by blood or adopted by the contributor. Contributions must be made before the beneficiaries turn 21

Who is eligible? To qualify for an RESP, a beneficiary must:

  • Be a Canadian resident
  • Have a valid Social Insurance Number (SIN)


As an incentive for parents to contribute to their child’s post-secondary education, the federal government offers two funding mechanisms.

  • Canada Education Savings Grant

Pays up to 20% of a child’s annual contribution up to an annual maximum of $500 or a lifetime maximum of $7200 until the beneficiary reaches the age of 17

  • Canada Learning Bond

Pays $500 plus an extra $100 per year up to the age of 15 to beneficiaries who were born after December 31st, 2003.

Projections for an average student’s tuition fees and cost of living away from home have been projected to reach $118,010 in 2030. The illustration shows how the cost of living increases over time. Statistics Canada revealed that university tuition fees have risen 135% in the past 10 years.

**Projection based on a 3% inflation rate per year. Source: Statistics Canada

Contact a 3i Financial Group Advisor today to see how an RESP can help you save for your child’s education.