Tax Bulletin - RESPs: Saving for Your Child's Education

August 05, 2021

As a parent, you’re concerned with the ever increasing costs of post-secondary education. You want your child to have at least the same opportunities you had — if not better opportunities! And, you want to know what options you have to save for your child’s education.

This bulletin describes Registered Education Savings Plans (RESPs) ― a tax-effective way of saving for your child’s education. RESPs are attractive due to their flexibility and because they enable you to tap into the federal government’s Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB). On the provincial front, Saskatchewan and British Columbia both have savings incentive programs to assist with and encourage education savings. Saskatchewan’s is called the Saskatchewan Advantage Grant for Education Savings Program (SAGES) and British Columbia’s is called the B.C. Training and Education Savings Grant (BCTESP). Québec has also implemented an education savings program called the Québec Education Savings Incentive (QESI). Note that the government of Alberta recently cancelled the Alberta Centennial Education Savings Plan (ACESP). Each of the available provincial plans are linked to RESPs and will be discussed later in the bulletin. As well, we will consider prescribed rate loans and “in-trust” accounts — alternative ways of saving for your child’s future.

Though the rules for RESPs are fairly complex, we believe understanding how they work is useful because of the important benefits RESPs provide to those interested in funding their children’s future education.

Download our full tax bulletin

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