Education savings In RRSP season, most people are focused on retirement savings, not their child’s future tuition bills. The reality is many parents will need to pay for higher education before they retire.
“An RESP is a particularly good tax minimization strategy for Canadians who have used up all their RSP contribution room, or who are looking to invest their tax refund,” says Peter Lewis of Canadian Scholarship Trust Foundation. RESPs also qualify for grants from the federal government. The Canada Education Savings Grant can add up to 20 per cent to contributions made into an RESP. And, if your family qualifies for the National Child Benefit Supplement, you may also qualify for the Canada Learning Bond which can add up to $2,000 to your education savings plan.