2025 The Year of Education: The Benefits of RESPs

By Susan O'Connor, Licensed Advisor at BGIP

As we kick off 2025, many families in Port Perry and the surrounding communities are looking for meaningful ways to secure their future after the tumultuous, financial roller coaster of the last few years. If you're a parent or guardian, you may have questions or concerns about how you will pay for your child or grandchild's education. Helping our kids get a good financial start is at the top of the “worry list” for many families I work with!

At BGIP, we believe that contributing regularly to a Registered Education Savings Plan (RESP) is the safest and most stress-free way to build an education savings pot. Using this strategy we've helped countless families in our community prepare for the rising costs of post-secondary education.

RESPs are such a powerful tool for securing your child's future and 2025 is the perfect time to start or enhance your savings plan.

When you open and contribute to an RESP, you're not just saving your own money—you're gaining access to government grants that can dramatically increase your savings. The Canada Education Savings Grant (CESG) provides a 20% match on annual contributions, up to $500 per year per child (with a lifetime maximum of $7,200).

Families with lower incomes may also qualify for the Canada Learning Bond (CLB), which adds up to $2,000 per child even if you can't make regular contributions. At BGIP, I'll help you navigate the process to ensure you're accessing all the grants your family qualifies for.

Another advantage of building an RESP with us is that your savings grow tax-free. Your investment earnings and grants remain untaxed while in the plan. When it's time for your child to use the funds, they'll be taxed at a low rate, since most students have little to no income.

These days, post-secondary education takes many forms, and an RESP can help fund them all. Whether your child is headed to university, college, or pursuing an apprenticeship, RESP funds can be used to cover tuition, books, housing, and more. At BGIP, we'll work with you to ensure your RESP covers all eventualities. We aim specifically to meet your family's goals with flexible investment options to maximize the possibilities.

Setting up an RESP makes saving for your child's future easier than ever. Automatic monthly contributions allow you to stay consistent without needing to think about it. Any size monthly contribution can grow into substantial savings over time, especially when combined with government grants and tax-free growth.

Give your child the gift of opportunity (and reduce the burden of student debt) by booking an appointment with me today. I specialize in family financial security and I would love to chat with you soon:

Email me: susan@bgip.ca

Call me: 905-622-3342

As your local financial team at 119 Perry Street in Port Perry, we're here to help you every step of the way. Simply pop in! We'd be honoured to provide the guidance you need.

At BGIP, we're committed to helping families plan for a brighter financial future. Let's work together to make 2025 the year you secure your child's path to success.

Here's to a happy, healthy, and financially secure New Year!