There are many things to consider when you’re planning for your children’s future. Knowing you will have enough money to help your children achieve their goals can make it easier to support your children’s life choices. Investing in a Registered Education Savings Plan (RESP) is one of the best ways to fund part or all of your children’s education. This is a savings plan that allows you to withdraw money to pay for their college or university education. The government grants that are paid on the money you invest make this one of the best investment options that exists today. Visit Human Resources Development Canada. How can I save now for my child’s education?
Are there limits?
What if my child chooses not to attend college or university?
How is the money invested?
How soon should I start?
What options do I have outside of an RESP?
If I haven’t saved, how can I fund my child’s education now? Speak to your Member Service Advisor for more information.  top
How can I save now for my child’s education?
The government will help you save with the Canadian Education Savings grant which pays 20% on the first $2,500 you contribute each year, for each child, if you save through an RESP. This means that the RESP can collect an extra $500 a year (to a lifetime maximum of $7,200 per beneficiary) towards a child's education. Where else can you get a 20% return on your money? top
Are there limits?
You can contribute any amount annually, provided the total contributions do not exceed the maximum lifetime limit of $50,000. (effective 2007 and subsequent years) The Canadian Education Savings Grant will only be applied to the first $2,500 RESP contributions. Grant room accumulates each year for a child until the end of the year during which the child turns 17 years of age, even if they are not named as an RESP beneficiary. Once an RESP is opened, annual contributions can be deposited into the RESP and provides the subscriber with an opporunity to 'catch up' on unused grant room. As there is no maximum yearly contribution, you only have to contribute $2,500 to get the full 20% grant. Any additional contributions would be applied to the years prior to the initial contribution and can go back all the way to December 31, 1997. top
What if my child chooses not to attend college or university?
If the child listed as an RESP beneficiary decides not to attend a post-secondary institution, there are other ways to put that money to use. You could name another beneficiary such as a brother or sister, or transfer up to $50,000 into your RRSP (certain conditions apply). For more information, visit the Government of Canada website.
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How is the money invested?
You have several options. The money you contribute to your RESP can be invested in lower-risk, lower-paying GIC’s or in higher risk, mutual funds with the potential of earning higher investment returns. We can help you choose what’s right for you. top
How soon should I start?
Contributing as soon as your child is born allows you to maximize the government program. It also makes saving for your child’s education easier and more affordable. For example, if you contribute $77 per pay from the time your child is born, you will have approximately $45,000 to fund your child’s education by the time your child is 17 years old (with the government grants and a modest investment return). If you wait until your child is 10 years old to start saving for their education, you will need to contribute about twice as much per pay to fund a $45,000 education. top
What options do I have outside of an RESP?
There are several options. With each of these options, you would not need to provide confirmation of enrolment in a post-secondary institution to access the funds. - You can make lump-sum or scheduled monthly, bi-weekly or weekly contributions to an OPPA Credit Union savings account.
- You can make lump-sum or scheduled monthly, bi-weekly or weekly contributions to a mutual fund account.
- You could make lump-sum investments to a Term Deposit or GIC.
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If I haven’t saved, how can I fund my child’s education now?
A student line of credit will provide your child with a portion of the funds to pay for post-secondary education expenses (including tuition, books, rent, food, etc.). You could also consider a personal loan or home equity line of credit. | 
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