Registered Education Savings Plans

How they can help build for a child’s future


Cost sometimes makes post-secondary education seem out of reach but there are measures that Métis individuals and families can take that will make the dream of higher education a reality.

Government of Canada Registered Education Savings Plans (RESPs) are a great way to plan for a child’s future education costs and can be an important component to ensure it will happen.

A RESP is a tax-sheltered education savings account that is registered with the Government of Canada. RESPs can be opened at most financial institutions, such as a banks, credit unions, or through a certified financial planner.

There are three types of RESPs:

  1. Family RESP: In a Family RESP money can be put aside for one or more children that are related to the donor by blood or adoption.

  2. Individual RESP: Through an Individual RESP contributions are made for one child whether they are related to the donor or not.

  3. Group RESP: Group RESPs allow contributions for one child and the savings are combined with those of other Group RESP donors. The group savings are usually put in low-risk investments. These plans are provided by group dealers.

Those who open a RESP are eligible for the Canada Learning Bond and the Canada Education Savings Grant.

The Canada Learning Bond is $500 offered by the Government of Canada. Also, a child could get $100 every year until he or she turns 15 years old to a maximum of $2,000.

To be eligible for the Canada Learning Bond the child must be born after December 31, 2003 and the parent must receive the National Child Benefit Supplement under the Canada Child Tax Benefit (also known as the family allowance).

The Canada Education Savings Grant is money that the Government of Canada will add to RESP savings. This grant has two parts.

1. Basic Canada Education Savings Grant

No matter how much money a family earns, the Basic Canada Education Savings Grant will give 20 per cent on every dollar of the first $2,500 contributed to a child’s RESP each year. This means that for every $10, the government will add $2.

2. Additional Canada Education Savings Grant

Depending on the net family income, an extra 10 or 20 per cent could be received on every dollar of the first $500 saved in a child’s RESP each year. This means that for every $10 saved, the Government will add an extra $1 or $2.

Many individuals are now providing a financial contribution to a child’s RESP at events such as baby showers, birthdays, good grades incentive and graduations as a method of helping to both support and encourage higher education!

For more information:
Call: 1 800 O-Canada (1-800-622-6232) or Toll free at: 1-800-926-9105
Or visit a Service Canada Centre near you

This information is from Human Resources and Skills Development Canada.