Education Savings Plan

If you are a Canadian, with a child, you should be taking advantage of an RESP.

A Registered Education Savings Plan is a type of savings account that grows tax free until a child is ready for post-secondary education. RESPs are a good way to save for a number of reasons:

* the money grows tax free until the child needs it for tuition, residence and other educational expenses;
* an RESP allows you to apply for the Canada Education Savings Grant on your child's behalf;

The idea is that, once again, the Canadian Government is encouraging you to save money and is providing a tax shelter, which is good, and as a secondary incentive you can apply for the Canada Education Savings Grant which will provide an additional government contribution to the RESP, for each eligible child.

If you contribute $2500 to the RESP, the government will contribute an additional $500 which is an immediate return of 20% in the first year.

More information is available at :

http://www.hrsdc.gc.ca/