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  • Writer's pictureBrett Volpe

Understanding RESPs: Maximizing Your Child's RESP Grants While Minimizing Fees

In the journey of parenting, preparing for your child's education stands as a paramount task. With the cost of education on the rise, it’s essential to start planning early. One of the most effective tools at your disposal is the Registered Education Savings Plan (RESP). At Volpe Financial Solutions, we understand the importance of making informed decisions about your child’s future. Today, we’ll guide you through maximizing the benefits of RESPs while keeping costs low.

Understanding RESPs

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An RESP is a tax-sheltered savings account that allows parents (or other family members) to save for a child’s post-secondary education. The beauty of an RESP lies in its ability to grow tax-free until the beneficiary is ready for their post-secondary journey. Furthermore, the government enhances your savings with grants that can significantly boost the account’s value.

Maximizing Government Grants

The Canadian government offers two primary types of grants through RESPs: the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB).

  • Canada Education Savings Grant (CESG): With CESG, the government matches 20% of your annual contributions, up to $500 per year, with a lifetime limit of $7,200 per beneficiary. To maximize this grant, aim to contribute at least $2,500 annually to your child's RESP.

  • Canada Learning Bond (CLB): For families with lower incomes, the CLB provides an additional incentive of up to $2,000 to help with the costs of a child's post-secondary education. There’s no need for personal contributions to receive the CLB, but applying for it is crucial to ensure you don’t leave money on the table.

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Minimizing Fees

While RESPs are a powerful tool, it’s important to be mindful of potential fees that can eat into your savings. Here are some tips to keep costs down:

  • Choose the Right Plan: There are primarily three types of RESPs available: family plans, individual plans, and group plans. Family and individual plans often have lower fees and more flexibility compared to group plans, which can come with high fees and strict contribution schedules.

  • Pay Attention to Investment Options: Your RESP provider will offer various investment options. Lower-cost index funds or ETFs can be a wise choice, as they often come with lower management fees compared to actively managed mutual funds.

  • Read the Fine Print: Be sure to understand all the fees associated with your RESP, including enrollment fees, administrative fees, and investment management fees. Asking questions upfront can save you from unexpected costs down the line.

Volpe Financial Solutions: Here to Help

At Volpe Financial Solutions, we believe in a personalized approach to financial planning. Our team is dedicated to helping you navigate the complexities of RESPs, from choosing the right plan to optimizing government grants and minimizing fees. We don’t work for any bank or insurance company, ensuring that our advice is tailored to what’s best for you and your family.

As you embark on the journey of saving for your child’s education, remember that starting early and making informed decisions can make all the difference. Let us help you lay the groundwork for your child’s bright future. Contact us today to learn more about how we can support your family’s educational goals.


The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This blog was written by Brett Volpe], for the benefit of Bret Volpe, Financial Advisor with Volpe Wealth Management, a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this article comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. 

Mutual Funds are offered through Investia Financial Services Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not  

be repeated. 

Mutual funds are offered through Investia Financial Services Inc.

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