The Fund Library Publishes Samantha Prasad's "Use RESPs To Fund Education Savings"

Parents and grandparents naturally look to the future education of their young children or grandchildren. After all, 17 years really isn't such a long time when you get down to it, and time flies! Post-secondary education is pricey, so the sooner you start saving, the better. Fortunately, there is a registered savings program that can help parents fund tuition when the time comes, and that also has some extra bonus points in the form of tax-deferred growth: the Registered Education Savings Plan (RESP). Here's a look at how it works and some tips on how to get the most from it.

While contributions to RESPs are not tax-deductible as they are with Registered Retirement Savings Plans, they are invested in a special fund in which earnings accumulate tax-free until they are distributed as payments for post-secondary education to children, grandchildren, or other designated beneficiaries.