Give the gift of an RESP this year!

Investing in a Child’s Future

It’s never too early to start putting money aside for a child’s education. Post-secondary education costs are estimated to go up drastically over the next eighteen years. Right now, a student living at home pays an average of $6,600 per school year. That amount is expected to reach $37,000 per year in less than two decades.

What Is an RESP?

It pays to save! With an RESP, you can help turn your child’s dreams into reality. An RESP is an education savings account registered with the Government of Canada. It helps you, your family or friends put aside money for your child’s education after high school. You can open an RESP at VantageOne Credit Union.

DID YOU KNOW – The federal government will match 20% of your RESP contributions, up to $500 each year until the child turns 17, to a lifetime limit of $7,200 per beneficiary. (more information below)

How does it work?

A family can set up a plan in which one or more of their children are listed as beneficiaries. It’s also important to note that anyone can contribute to an RESP, not just the parents of the child.

While they are not tax-deductible like RRSPs, RESPs do offer some tax benefits. Interest earned on an RESP is tax-free, and when your child starts using the money for school only the accumulated interest is taxable as income.

How can I gift an RESP to someone?

Whether it’s a $100 gift or $10 a month until they turn 18, any gift amount helps! You will help the future student focus on their studies by pitching in for their post-secondary related costs. Talk to their parents about the options below and then contact VantageOne to get started:

  1. Have a parent or guardian deposit your gift amount into an existing RESP.
  2. Open an RESP on behalf of the lucky child. You can gift a friend’s child or a relative. If you are gifting an RESP to a relative with a sibling (related by DNA or adoption) consider opening a family account. This way all beneficiaries can share in the contributions and their earnings.

What Is the Canada Education Savings Grant?

The biggest incentive to buy RESPs is the Canada Education Savings Grant. The federal government matches 20% of your RESP contributions, up to $500 each year until the child turns 17, to a lifetime limit of $7,200 per beneficiary. Depending on your income, you may also qualify for the Canada Learning Bond.

The earlier you start putting money toward a child’s RESP the more he or she will benefit from the annual grants and tax-free interest. And don’t worry, in the event that the child listed as beneficiary does not choose to attend a post-secondary institution there are other ways to put that money to use.

How do I open an RESP for my child and receive the Government grants?

  • Get a Social Insurance Number (SIN) for your child. It’s free. Call 1 800 O-Canada (1-800-622-6232) for more information or visit a Service Canada Centre near you.
  • Contact VantageOne Credit Union to open an RESP.
  • Open an RESP and complete the Basic and Additional Canada Education Savings Grant and the Canada Learning Bond application (if applicable) form with the help of a VantageOne staff member.

Contact your local branch if you want to get started setting up an RESP! Or visit the Government of Canada website to learn more.

For your appointment, remember to bring:

  • Your social insurance card
  • Your child’s social insurance card
  • Your child’s birth certificate or permanent resident card

If you are not the parent or legal guardian of a child, but would like to open an RESP for them, you can get more information on what documents you’ll need to bring with you by calling your local VantageOne Branch.


Registered Education Savings Plans by the numbers…

$60,000: Average cost of a 4-year university degree

$120,000: Estimated total cost of a 4-year degree by 2024.

31: Number of years contributions may be made after the plan is set up. This can increase to 35 years if the beneficiary is eligible for the disability tax credit.