The cost of tuition and other expenses related to post-secondary studies is rising a trend that is expected to continue. By the year 2027, the cost of education including tuition, books, supplies and accommodations is estimated to be over $110,000 for a four year Bachelor of Arts degree. An RESP can help parents save for this expense.
There are two types of RESPs
- Individual: One person is the beneficiary and they do not have to be related to the subscriber
- Family: There can be more than one beneficiary as long as they are all under 21 and related to the subscriber by blood relationship or adoption. A blood relationship includes: son, daughter, brother, sister, or grandchild. In order to receive the Additional Grant and/or the Canada Learning bond and/or the Alberta Centennial Educations Savings Grant, the Family Plan must have only beneficiaries that are all siblings of each other
Canada Education Savings Grant
The Canada Education Savings Grant (CESG) provides grants to Registered Education Savings Plan (RESP) contributors until the beneficiaries reach the age of 17. Regardless of income the government will provide a matching grant of 20% of the first $2,500 contributes each year to the plan.
- Parents, relatives and friends of a beneficiary may contribute up to a lifetime limit of $50,000 per child.
- Contributions must be made prior to the end of the calendar year in which the beneficiary turns 17.
- Special conditions exist for beneficiaries aged 16 and 17.
- Other criteria may apply.