Registered Education Savings Plan (RESP)

What is it?

An RESP is an account designed to help parents and guardians save for their child’s post-secondary education. It’s important to note that RESPs are not tax deductible, but they do offer many other tax advantages such as tax-free growth and access to government grants.


What can I use it for?

An RESP is primarily used to save and invest money for the purpose of funding a beneficiary’s post-secondary education in Canada assisting with things such as tuition fees, textbooks, supplies, accommodations, and student loans.

A beneficiary is the person (usually child) who will get the money from the RESP to pay for their education after high school.

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Why invest in a RESP?

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Government grants and bonds

The Government of Canada provides incentives to save for education through programs like the Canada Education Savings Grant and the Canada Learning Bond

Tax advantages for the win

Your contributions grow tax-free, meaning you don’t get charged taxes on any investment profits

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Flexible investment options

You have a range of investment options including stocks, bonds, and mutual funds to make the most of your RESP

How does it work?

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An RESP is a savings vehicle in Canada designed to help parents and guardians save for their child’s post-secondary education. You’ll need to start off by choosing which RESP suits you best: family plan, individual plan, or group plan.

Family plan: if you plan on having more than one child, this plan allows you to name one or more children to receive the savings.

Individual (non-family) plan: this plan is if you have one child, or you’re not related to the child you’ll be saving for.

Group plan: this plan is for one child, who doesn’t need to be related to you. Parents or guardians will make regular contributions to the Group RESP. Typically these are fixed and set according to a predetermined schedule. The total amount contributed depends on the chosen plan and the number of years until the child starts post-secondary. The contributions from all plan participants are pooled together into a common fund. Any income generated is used to provide educational payments to the beneficiaries in the plan.

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Once you’ve decided which RESP suits you best, you’ll need to provide a social insurance number for yourself as well as the beneficiary, name the person you’re saving for, apply for the benefits (government grants and bonds), and make your contributions!

RESP by the numbers

$50,000

The maximum lifetime contribution limit per child

31

Contribution period lasts until the end of the calendar year in which the beneficiary turns 31

$5,000

Payment limit for full-time students during the first 13 weeks of enrollment (no limit after 13 weeks)

Is this right for you?

Right for you if you: 

  • Post-secondary is in the future. If you have a child or beneficiary who plans to go receive post-secondary education in the future. Big dreams require some pre-planning!

  • You want to take advantage of free government money. The Canadian government provides grants which can significantly boost your savings when you contribute to an RESP.

  • Flexibility is key. If your beneficiary decides not to pursue post-secondary education or needs less than expected, you have options to transfer funds or withdraw contributions.

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May not be right for you if you:

  • You don’t have a child or beneficiary in mind who’s trying to pursue post-secondary education.

  • You have short-term goals. If you want a short-term investment with more liquidity (being able to quickly convert your investment to cash).

  • High risk, high return is your strategy. If you’re ready to go big or go home, an RESP is not for you. You might want to consider stocks as part of your investment strategy.

Products for an RESP

You've settled on a RESP, and it aligns perfectly with your financial objectives. It's time to choose the right products to invest your funds in and watch them flourish. Your potential earnings are directly linked to your comfort level with risk.

Discover the array of options that Conexus has to offer – there's a wealth of opportunities waiting for you!

An investment vehicle that pools money from multiple investors to buy a diversified portfolio of stocks, bonds, and other securities. Their key benefits include diversification and accessibility to a wide range of investment options, making it a convenient way for you to participate in the financial markets with reduced risk and expertise on your side from Conexus.


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Exchange-Traded Funds are investment funds that are traded on stock exchanges, much like individual stocks. Similar to a mutual fund, ETFs offer diversification as a benefit but with the added flexibility to trade throughout the day at market prices.


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At Conexus, we have a range of investment products designed to help you achieve your financial goals. Our diverse portfolio includes stocks, bonds, GICs, and more, each tailored to suit your risk tolerance and investment objectives.


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Have questions? That’s what we’re here for!

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Give us a call

Have questions about which investment option is most suitable for you?

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Schedule an appointment

Want to learn more about investing? Book an appointment with one of our advisors.

Tools & Resources 

Calculator

Maximize education savings and secure your child’s future

Money Advice for Life

What to know when it comes to RESPs

Disclaimer

Mutual funds, other securities and securities related financial planning services are offered through Aviso Wealth, a division of Aviso Financial Inc. Online brokerage services are offered through Qtrade Direct Investing, a division of Aviso Financial Inc. Qtrade and Qtrade Direct Investing are trade names and/or trademarks of Aviso Wealth Inc. and its subsidiaries.

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