Unlocking Your Child’s Future: The Benefits of a Registered Education Savings Plan (RESP) in Canada

Bradley Winlaw • May 15, 2025

Planning for your child’s education can feel overwhelming, especially with the rising cost of tuition and living expenses. But in Canada, parents and guardians have a powerful tool at their disposal: the Registered Education Savings Plan (RESP). More than just a savings account, an RESP is a government-supported investment vehicle designed to help families save for post-secondary education — and it comes with some great benefits!

1. Government Grants Boost Your Savings

One of the most compelling reasons to open an RESP is the Canada Education Savings Grant (CESG). The government will match 20% of your annual contributions up to a maximum of $500 per year (and a lifetime maximum of $7,200 per child). For lower-income families, additional grants are available through the Additional CESG and Canada Learning Bond (CLB).

These grants mean your money grows faster than it would in a typical savings account — even if you don’t contribute a large amount each year.

2. Tax-Sheltered Growth

All investment earnings inside an RESP grow tax-deferred. That means you won’t pay tax on any interest, dividends, or capital gains while the funds remain in the plan. When your child eventually withdraws the money for education, the taxable portion is attributed to them — and since students typically have little to no income, they’ll likely pay little or no tax.

3. Flexible Investment Options

RESPs aren’t one-size-fits-all. You can choose from a range of investment options — including mutual funds, GICs, ETFs, stocks, bonds and alternatives — depending on your risk tolerance and savings timeline. This flexibility allows you to tailor your RESP strategy to meet your specific financial goals.

4. Supports a Variety of Post-Secondary Paths

RESP funds can be used for more than just university tuition. Whether your child pursues college, trade school, or another qualifying program (even some abroad), RESP withdrawals can be used to pay for tuition, books, accommodation, transportation, and other education-related expenses.

5. Contribution Flexibility

While there is a lifetime contribution limit of $50,000 per beneficiary, there is no annual contribution limit. You can contribute as much or as little as you’re able to, when it suits your budget — making it a flexible option for families of all income levels. However, the annual limit is $2,500 per child to get the maximum 20% matching grant from the government and up to $5,000 per child if you have carry forward room.

6. Multiple Plan Types to Fit Your Needs

There are three main types of RESPs:

Individual Plan – One beneficiary, ideal if you’re saving for one child.

Family Plan – Multiple beneficiaries (must be related), allowing you to share the funds. Ideal if one or more of the beneficiaries decides not to attend post-secondary education.

Each has its advantages, depending on how many children you're saving for and how you prefer to invest.

7. Encourages Long-Term Savings Discipline

Because RESPs are specifically earmarked for education, they help families stay focused on a long-term savings goal. This can reduce the temptation to dip into the money for other expenses and provide peace of mind knowing your child’s future is more secure.

Final Thoughts

An RESP is more than just a financial product — it’s an investment in your child’s future. With government support, tax-sheltered growth, and flexible investment options, it’s one of the smartest ways to save for post-secondary education in Canada. The earlier you start, the more time your money has to grow — so don’t wait to take advantage of this valuable program. Speak to your financial advisor to explore your RESP options and start building a brighter future today.

Schedule a consultation with Bradley today and start building a pathtoward clarity, security, and long-term success!!

Bradley Winlaw,

Investment Advisor

Green Private Wealth

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First Home Savings Account

By Brad Winlaw • October 22, 2025

The New First Home Savings Account (FHSA): A Powerful Tool for First-Time Homebuyers Buying your first home is exciting — but saving for a down payment can feel daunting. To help Canadians reach that goal faster, the government introduced the First Home Savings Account (FHSA) — a new plan that blends the best features of an RRSP and a TFSA. What Is an FHSA? The FHSA is a registered account that allows eligible Canadians to save up to $40,000 toward their first home, with some major tax advantages: Tax-deductible contributions: Just like an RRSP, contributions reduce your taxable income. Tax-free growth: Any investment earnings inside the account are tax-free. Tax-free withdrawals: When you use the funds to buy your first home, both your contributions and investment gains come out completely tax-free. Key Rules and Limits Eligibility: You must be a Canadian resident, at least 18, and a first-time homebuyer — meaning you haven’t lived in a home you (or your spouse) owned in the past four years. Contribution limits: Up to $8,000 per year, with a $40,000 lifetime maximum. Unused room carries forward (up to $8,000). Account lifespan: You can keep an FHSA open for up to 15 years, or until the end of the year you turn 71, whichever comes first. If you decide not to buy a home, you can transfer the balance to your RRSP or RRIF without affecting your RRSP contribution room -keeping your savings tax-deferred. FHSA vs. Other Savings Options Feature FHSA RRSP (Home Buyers’ Plan) TFSA Tax deduction. Yes Yes No Tax-free withdrawals For first home Must be repaid Yes Repayment required No Yes, over 15 years No Unlike the RRSP Homebuyers Plan, the FHSA has no repayment plan but still receives the same tax deduction benefit. Who Benefits Most The FHSA can be an incredible opportunity for a wide range of Canadians: Young professionals and new graduates who plan to buy their first home in the next several years can start building savings early while reducing their taxable income each year. Couples saving together can each open an FHSA, doubling their potential combined tax-free savings to $80,000. High-income earners benefit from the immediate tax deduction, lowering their taxable income while still keeping flexibility for future home purchases. Renters who are unsure of their timeline can still take advantage of the FHSA. If they don’t end up buying, funds can be rolled into an RRSP or RRIF with no tax consequences — so there’s virtually no downside to opening one. Parents looking to help their adult children might also consider gifting FHSA contributions as part of a longer-term strategy to support homeownership. The Bottom Line The First Home Savings Account is one of the most effective new savings tools available to Canadians. It combines the immediate tax benefit of an RRSP with the flexibility and tax-free growth of a TFSA — all designed to make homeownership more achievable. If you’re thinking about buying your first home or want to explore how the FHSA fits into your financial plan, let’s connect. Together, we can build a savings strategy that helps you move closer to your first set of house keys — and your long-term financial goals. Brad Winlaw Investment Advisor Green Private Wealth

Mid-Year Check Up

By Dave Harris • July 31, 2025

Review how markets have performed so far in 2025, what risks to watch, and how Green Private Wealth is adjusting portfolios to stay ahead.