Definitions for "Registered Education Savings Plan"
RESPs allow investors to contribute money and to grow savings tax-free until the chosen beneficiary applies that money to full-time educational pursuits at a college, university or any other eligible post-secondary educational institution. Investors can contribute up to $4,000 per year, per beneficiary.
This is one of the most effective ways to start saving for their children's future educational needs.
An investment plan, registered with the government, which allows the accumulation on a tax-deferred basis of contributions for education. Contributions are not tax-deductible.