RESP accounts give students access to certain government grants
that help fund post-secondary education.
This is in addition to a tax benefit of a registered account.
ALREADY 15 OR OLDER
Unfortunately, there's not much you can do, unless your family has come upon substantial amounts of money that it wants to put in an RESP to defer investment income for a few years.
Check 2 things:
- Have you received the full available amount of the Canada Education Savings Grant? If not, and you / your family can make some money available, you may be able to catch up for at least a portion of it - up until you turn 17.
- Were you eligible in any year for additional grants available to low- and lower-income families (Canada Learning Bond)? If so, you may also be able to catch up - but only up to the calendar year in which you turn 15. No contributions are necessary.
Your RESP may be a group RESP or an individual RESP. Procedures may be slightly different for group RESPs so you'll need to inquire with your provider.
When you're having this conversation, it may be appropriate to ask if your family intends to give you all of the monies they contributed to fund your education, or just the government grant portion and investment income. This will help you plan.
TURNING 15 THIS YEAR, OR YOUNGER
Before the end of the year when you turn 15, arrange with your parents / primary caregiver / another adult to open one.
If your family has low income, you are likely eligible for the Canada Learning Bond, a government grant of up to $2,000, even if your family / you are not making any contributions.
If you or your family can make any contributions this year, you'll be getting some additional money from the Canada Education Savings Grant. Up to the calendar year in which you turn 15 you can catch up on past contributions.
A RESP savings account or RESP GIC are appropriate given that you'll need the money in a few years after you graduate high school.
ONCE YOU HAVE A RESP...
You'll need to plan when and how you'll withdraw the money in a responsible way.
IF YOU DON'T HAVE A RESP...
IF YOU ALREADY HAVE A RESP, NO MATTER WHAT AGE YOU ARE...
FIND OUT IF YOU HAVE A RESP and learn what to do about it
What's a RESP? It's a registered account that your family / primary caregiver can set up for you as soon as you're born to save some money in a tax-efficient way and accumulate government grants for your post-secondary education.
Ask your parent / primary caregiver / grandparent if they have set up a RESP account for you (the person who set it up for you is called a 'subscriber').
If you're <15, you should be able to catch up for past years and get some of the grant money for which you're eligible. Even if you're 16-17, you still may be able to partly catch up if you / your family have some money to contribute.
Even if you're older (but <35), you may have a RESP account. If you do, you need to learn how to withdraw the money and wind it down.