RESPs Gain Traction as Canadian Families Seek Education Savings Solutions
Registered Education Savings Plans (RESPs) are emerging as a cornerstone of financial planning for Canadian families. With education costs soaring nationwide, these tax-advantaged accounts offer a structured approach to funding post-secondary studies. The government boosts savings with a 20% annual match on contributions up to $2,500, while withdrawals face minimal taxation at the student's income level.
Flexibility defines the RESP model. Beyond parental contributions, extended family and even close friends can participate in building an education fund. This collective approach transforms sporadic gifts into compounded growth, outpacing traditional savings vehicles. As financial pressures mount, RESPs shift from niche products to essential tools—blending familial support with fiscal pragmatism.
