• Last Updated:
  • Oct 22nd, 2017 2:52 pm
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Sr. Member
Jan 8, 2006
932 posts
228 upvotes
jimprdx wrote:
Sep 30th, 2017 1:54 pm
if you just have one kid at the moment opt for a family plan so if you have more than one kid it only takes one of them to go to university to keep the grants, and
I was under impression that one can always convert individual RESP to family but not other way around. Family RESP has expire date 31 years from the day of opening. So isn't good idea to open individual first than convert or open another individual RESP?

http://blog.modernadvisor.ca/resps-indi ... mily-plan/

OP try to get copy of Saving for Schools by Gail Vaz-Oxldae it has some good information. It's a small book and quick read with good information.
Jr. Member
Jul 30, 2016
166 posts
23 upvotes
Hi Gurus,

My baby girl borned Aug 2015, i didnt contributed RESP. She just turned 2 and this is end of the year.

1. Can i contribute from her day 1 to until today as a lumsum, is it a good idea or not.

2. We may move back to india in 5 to 10 yrs, is she eligible to go to university there with this RESP money or is it eligible only in Canada.

3. We are expexting a new born next month, should i go to RESP immediately after baby is born.

Kindly advise me on this.

Thanks for ur help
Deal Addict
Sep 10, 2010
1562 posts
322 upvotes
Ottawa
do they have to go to university to use the money? what about college? I went to university myself, but later realized i could have went to college and some programs are made for college.
Sr. Member
Mar 10, 2010
868 posts
91 upvotes
College is fine and a most apprenticeship style systems are also OK.
eugene188 wrote:
Oct 22nd, 2017 1:10 pm
do they have to go to university to use the money? what about college? I went to university myself, but later realized i could have went to college and some programs are made for college.
Deal Guru
Aug 2, 2001
13996 posts
4504 upvotes
eugene188 wrote:
Oct 22nd, 2017 1:10 pm
do they have to go to university to use the money? what about college? I went to university myself, but later realized i could have went to college and some programs are made for college.
Qualifying educational program

A qualifying educational program is an educational program at post-secondary school level, that lasts at least three consecutive weeks, and that requires a student to spend no less than 10 hours per week on courses or work in the program.

https://www.canada.ca/en/revenue-agency ... geducation

In short, yes, typical college programs would count. The link above may also answer your other questions.


Edit: Actually the parent link was better:
A qualifying educational program is an educational program at post-secondary school level, that lasts at least three consecutive weeks, and that requires a student to spend no less than 10 hours per-week on courses or work in the program.

A specified educational program is a program at post-secondary school level that lasts at least three consecutive weeks, and that requires a student to spend no less than 12 hours per-month on courses in the program.

A post-secondary educational institution includes:

a university, college, or other designated educational institution in Canada;
an educational institution in Canada certified by Employment and Social Development Canada (ESDC) as offering non-credit courses that develop or improve skills in an occupation;
a university outside Canada that has courses at the post-secondary school level at which the beneficiary was enrolled on a full-time basis in a course of not less than three consecutive weeks; and

a university, college or other educational institution outside Canada that has courses at post-secondary school level at which a beneficiary was enrolled in a course of not less than 13 consecutive weeks.

https://www.canada.ca/en/revenue-agency ... -eaps.html
Newbie
Jun 10, 2013
47 posts
15 upvotes
College is included as well, so long as it's an accredited one and not a private fly-by-night operation.

I opened my RESP at Questrade. I'm happy with it. At the time they didn't have fees, but I think there might be some admin fee if your total assets aren't 15k - though if someone doesn't have 15k in investible assets, contributing to an RESP might be contentious (they say your retirement security comes first). Opening an RESP at a discount broker is your best bet since you can access low cost investing options. It might be worth reviewing how their service is (some people may not care how you use the money, some people might be more restrictive) - entities that hold your RESPs are called promoters. CIBC used to be fee free but not sure about now, regardless you'd pay 6.95 per trade, not bad, but hard to beat Questrade's free ETF accumulation (though you'd pay a few pennies for ECN fees).

Whatever you do, just don't go with a scholarship fund - they are usually highly restrictive and come with lots of fees. It's best to manage the money yourself.

This is a good resource: http://www.moneysmartsblog.com/resp-reference/
I believe the blog owner wrote a book that you can read in 2 hours (I'm an incredibly slow reader)

You can probably (verify, I'm not 100% sure) delay contributing up to when they're 10 and still receive the government benefits (20%) but you'll miss out on the investment compounding (which is the whole point) and you'll be packing 5k per year from 10 years old instead of 2.5k if you just started earlier.

In any case everyone with kids should have an RESP open because even if someone is dirt poor, they can still benefit from Canadian Learning Bonds.

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