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Setting up an RESP to save for your child’s post-secondary education is always a good move, and the government will even sponsor part of your contributions through generous grants!
There are different plans and contribution options, so finding the right fit for your savings style and budget is never a problem. You can choose to go monthly, annually or even make one-time contributions whenever you can or want to. Learn more about how RESPs work.
As for how much you should save, that involves a few variables that need some consideration, such as your financial situation, if you think your child may have to move to study, if you want to cover part or all of the bills, if you want to plan for extended studies, and so forth. These are all questions you can ask one of our representatives. They’ll walk you through your options and help you find a plan that works for you.
But for now, if you want a ballpark number, try out our RESP calculator!
Our calculator simulates monthly savings in our REFLEX Plan. Simply enter your child’s age, the province in which you reside and the amount you’d like to save. You’ll instantly see how much will be available for school when your child is 17 years old. The calculator also provides a nice breakdown of the different funds that make up your RESP: contributions, grants and income.
Moreover, this calculator only takes into account the basic grant rates to which everyone is entitled. But let’s take a second to explain these grants a little more, since they really are the best part of the RESP!
The federal government pays grants into the RESP of every Canadian child, yep it’s true! This grant is called the Canada Education Savings Grant (CESG) and will match 20% of the first $2,500 you save every year. Then, there’s the Additional CESG, which is based on your adjusted family net income and is equal to 10% or 20% of the first $500 contributed every year.
The federal government also introduced the Canada Learning Bond (CLB), a grant to help lower-income families. This grant can reach a maximum lifetime amount of $2,000, and the best part is that if you qualify, you can even open an RESP with Kaleido for free, just to receive these grant payments.
Not every provincial government offers an RESP grant, so it’s great to live in Quebec because every child is entitled to the Quebec Education Savings Incentive (QESI)1. This grant works a little like the CESG. Regardless of your family income, the basic QESI is equal to 10% of the first $2,500 contributed into an RESP during a given tax year. Then, based on your adjusted family net income, your beneficiary could be eligible for the Additional QESI and receive extra grants equal to 5% or 10% of the first $500 contributed each year.
So in a nutshell, if you live in Quebec, the government will chip in a minimum of 30% in grants, just as a way to encourage your efforts to save!
* Our lawyers insist that we mention the identities marked with an asterisk are fictitious and only serve to present the most frequently asked questions. We understand your concerns well, so we took the lead. The answers, for their part, are all very real.
1. Available in Quebec only.