A Registered Education Savings Plan (RESP) is a tax-advantaged savings account designed to help Canadian families save for a child’s post-secondary education. Contributions to an RESP are not tax-deductible, but the money grows tax-free until it’s withdrawn.
The government may also contribute through grants, such as the Canada Education Savings Grant (CESG), which matches a portion of contributions. When the student withdraws funds for school, they pay tax on the income, typically at a lower rate. RESPs can be opened by parents, guardians, or others, and are a flexible, effective tool for long-term education savings in Canada.
