RESP (Registered Education Savings Plan)

Quick Definition

A tax-sheltered account for a child's post-secondary education.

Full Explanation

An RESP lets savings for a child's education grow tax-deferred. The government's Canada Education Savings Grant adds 20% on the first $2,500 contributed per child each year, up to a lifetime maximum of $7,200 per child.

Related Terms

TFSA (Tax-Free Savings Account)

A flexible registered account where investment growth and withdrawals are completely tax-free.

Compound Interest

Interest calculated on both the principal and previously earned interest, accelerating growth.

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