An RESP is a "Registered Education Savings Plan" and it is a popular tool to save for education. The idea of ​​the RESP is that you would contribute money into an account, and the government would contribute 20% of what you put in up to $ 500 per year. There are additional grants available, but there are conditions based on having lower income. The other reason why the RESP may be beneficial is that the income generated in the account would grow tax free until it is withdrawn. This would happen when the child goes to school, which is usually 18 to 20 years from when the child is born. There are limits to what you can put in – $ 50,000 lifetime per child, and the government will only give up to $ 7,200 lifetime in grants. The money the government gives you is called the Canada Education Savings … Read More

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