How high will tuition costs be in 5, 10 or even 15 years?

Projections indicate that in 2027 it will cost more than $114,063 for a 4-year university program for a student living away from home.

The Registered Education Savings Plan (RESP) is a financial tool specially designed to accumulate savings to be used as a financial resource for a beneficiary’s post-secondary education. As with an RRSP, the federal government allows the investment income to grow tax shelter until the money is withdrawn from the plan.

The Advantages of a RESP:

• Accumulate the necessary funds to finance a child’s post-secondary education (Contributions are limited to $50,000, per beneficiary, for life).
• Eligible for a government grant equal to 20% of your annual contributions to the RESP (up to $500 per year to a maximum of $7,200 per beneficiary)
• An education bonus of up to 15% of the contributions to the RESP will increase the income paid as Educational Assistance Payments (EAPs)
• The chance to watch your money grow sheltered from tax.
• Flexibility to change the plan’s beneficiary.
• Withdrawals of contributions are tax-free.
• The investment income is transferable to your RRSP if the child chooses not to pursue a post-secondary education.