The document summarizes Canada's Canada Education Savings Program (CESP) which helps parents save for their children's post-secondary education. It offers post-secondary education savings incentives like the Canada Learning Bond and Canada Education Savings Grant. The Registered Education Savings Plan (RESP) is a popular education savings vehicle in Canada, with over $47 billion and 5.4 million beneficiaries. RESPs allow tax-free growth of contributions and grants. Examples show how monthly or annual contributions over time can lead to significant savings to fund a child's education.

1. Canada Education Savings Program
(CESP)
Helping Parents Save for Their Children’s
Post-Secondary Education
1

2. 4 Years University Cost
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
2016 2018 2020 2022 2024 2026 2028 2030 2032 2034
$49,948 $51,996 $54,067 $56,251 $58,523 $60,887 $63,346 $65,905 $67,196 $69,911
$87,823 $91,372 $95,063 $98,903
$102,899
$107,056
$111,382
$115,882 $120,564
$125,415
Living at Home Living Away
The above costs are from CanLearn webite www.canlearn.ca and assuming a 2% annual increase

3. Offers Post-Secondary Education Savings
Incentives
1. Canada Learning Bond (CLB)
2. Canada Education Savings Grant (CESG)
3. Additional CESG
2

4. RESP
(Registered Education Savings Plan)

5. RESP Industry In Canada*
$47 Billion in
RESP
5.4 Million
Beneficiaries
$9.7 Billion in
Gov’t Grants
*Annual Statistical Revue Government of Canada

6. What is an RESP?
• Education Savings Plan Registered with Canada Revenue Agency
• Contributions + Grants Grow Tax Free.
How Does RESP work?
• You Contribute Monthly or Annually or One-time Payment Amounts In Your RESP
• Free Money (Government Grants) Matches 20% of the Amount You Contribute in your RESP
(up to $7200 per child, a maximum of $500 per year, or $1000 in catch-up cases)
• Total Amount (Your Contributions Plus Government Grants) are Invested and Grow Tax Free
• Your Kid can go to university in Any Part of the World
RESP can remain open for 36 years.
7

7. Where are RESP’s Offered?
• Specialized Companies for RESPs
• Banks
• Insurance Companies
10

8. What Sort of Investments and Risks?
7
Savings Account (Very Low Risk)
Govt Bonds, and Fixed Income (National Policy 15) (Low to Moderate Risk)
Guaranteed Investment Certificates (N15) (Low to Moderate Risk)
Mutual Funds/Stocks (Moderate to High Risk)
Make sure you get advice on the most suitable investment category to
your situation
National Policy 15 Recommends low to moderate Risk for RESPs
Investments

9. Choosing the Right RESP:
Individual Plans
One beneficiary (child) which can be changed to a sibling at any time. Multiple
subscribers possible: Parents, grandparents or even someone not related to the
child.
Family Plans
Multiple beneficiaries possible, can be opened by parents or grandparents
Group Plans
Grouping of children by age. Strict guidelines apply to transferring to other plans and
to prescribed timing of enrollment in an approved post-secondary institution
10
Make sure you get advice on the most suitable plan to your situation so
as not to burden yourself

10. Example for Yearly Contributions Until Age 18
• Age: 6 Years
• Yearly Contributions: $3000
• Annual Rate of Return: 4%*
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Your Contribution You Receive
$36,000 $36,000
$7,200
$16,432
Contribution Gov't Grants Earnings
$59,632
Rate
of Return
66%
*Assumption based on low to moderate risk investment strategy (Gov’t Bonds and Guaranteed Investment Certificates) recommended by the Securities laws in Canada for RESP Investments

11. Example for Monthly Contributions Until Age 18
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
You Contribute You Receive
$28,800
$28,800
$5,760
$12,517
Contributions Govt Grants Earnings
Rate
of Return
63%
$47,077
*Assumption based on low to moderate risk investment strategy (Gov’t Bonds and Guaranteed Investment Certificates) recommended by the Securities laws in Canada for RESP Investments
• Age: 6 Years
• Monthly Contributions: $200
• Annual Rate of Return: 4%*

12. Example for Yearly Contributions Until Age 18
• Age: 11 Years
• Yearly Contributions: $5000
• Annual Rate of Return: 4%*
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Your Contribution You Receive
$35,000 $35,000
$7,000
$10,242
Contribution Gov't Grants Earnings
$52,242
Rate
of Return
49%
*Assumption based on low to moderate risk investment strategy (Gov’t Bonds and Guaranteed Investment Certificates) recommended by the Securities laws in Canada for RESP Investments

13. Example for Monthly Contributions Until Age 18
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
You Contribute You Receive
$28,800
$28,800
$5,760
$7,292
Contributions Govt Grants Earnings
Rate
of Return
45%
$41,852
*Assumption based on more conservative view
• Age: 6 Years
• Monthly Contributions: $200
• Annual Rate of Return: 2.5%*

14. Example for Yearly Contributions Until Age 18
• Age: 6 Years
• Yearly Contributions: $3000
• Annual Rate of Return: 2.5%*
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Your Contribution You Receive
$36,000 $36,000
$7,200
$9,615
Contribution Gov't Grants Earnings
$52,815
Rate
of Return
47%
*Assumption based on a more conservative view