SESSION OVERVIEW:

An RESP is a smart way to save for a child's education, but it also serves to split income earned in the plan by the beneficiary, who will be taxed at a lower rate than the contributor, provided that school is attended. There are also special savings incentives offered by government, but take-up rates are low. In a cash-strapped world, advisors can help.

APPROACH:

Families of future scholars will want to prepare now to help fund those costs, which can be significant. The RESP and other incentives provide an excellent way to keep future graduates out of debt, or better manage the debt they have accumulated. Advisors can help along the way by explaining the tax advantages and finding new dollars with tax savings.

WHAT YOU WILL LEARN:

• The role of an RESP
• Learn about CESG - the sweetener to RESP savings
• Learn ways through the Canada Learning Bond to add money to an RESP for an eligible child every year
• What happens if a student does not attend post- secondary school
• Learn when and how to use Education Assistance Payments (EAPs)

LEARNING ACTIVITIES: To test the learning process, the student will answer multiple-choice questions and contemplate the role of the advisor.