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RESP - Registered Education Savings Plan

Globe and MailRising Tuition Fees taking toll on students
Read the Globe and Mail Article.


The importance of having an RESP

You feel strongly about wanting to give to your child the chance to pursue post-secondary studies. Given the high cost of a college and university education, it is wise to start saving early.

What's more, when you invest in a project that is as important as your child's education, it is of the utmost importance that you select the investment vehicle that will offer you both performance and security. The registered education savings plan (RESP) is the best financial tool to reach your goal since it provides access to the Canada Education Savings Grant (CESG) while you accumulate your income in a tax shelter.

Educational Planning
Children grow up fast...Paying for a university education can present a financial burden. When faced with university expenses for more than one child at the same time, that burden can be tremendous.

The average tuition for Canadian undergraduate university students more than doubled from $750 to $1,700 from 1981 to 1992. There is reason to expect that this rate of increase will continue or even accelerate. With this spiraling cost of education, advance planning is essential.

RESP - Education Costs

Assuming current educational costs of $1,700 per year, that cost could grow too $7,222 in 20 years, based on an annual 7.5% Education Price Index (EPI) since 1971.

Source: Education Quarterly Review. Winter 1994 Statistics Canada

Can Canada Student Loan Assistance Help?
Canada Student Loan and provincial student assistance are only granted when the student's financial resources from family, work and other sources are deemed insufficient to cover educational costs.

Average Canadian family income rose 2.4% during 1981 to 1991. Yet tuition more than doubled during that same period. Many families just cannot give tuition assistance.

Although a substantial burden to the tax payers at $950 million in 1992, student assistance has not increased to the same extent as tuition fees. Source: Education Quarterly Review. Winter 1994. Statistics Canada.

The Ideal Educational Funding Program Will...

  • Assure sufficient funds for your children to attend the university of your choice.
  • Substantially reduce your total expenditures.
  • Avoid unmanageable financial burdens during university or college years.
  • Reduce the potential of needing to borrow money or liquidate other assets to finance your children’s education.
  • Manage and control your cash flow .

We offer two types of plans offered by Industrial Alliance, the Diploma Plan and the My Education Plan.


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