RESP SOSD - Seven Oaks School Division€¦ · Choose an Registered Education Savings Plan Provider To open an RESP, you can go to most banks, credit unions, group plan dealers and
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Like you, Seven Oaks School Division believes a good education is
where great futures start – and that includes the education your child
gets after high school. That’s why Seven Oaks School Division wants
you to know about Registered Education Savings Plans which are also
called RESPs. An RESP is an account you can open to start saving for
your child’s college, university, trade school or other studies after high
school. What’s really great is – in addition to the money you save – the
Government of Canada will add money to your child’s RESP through
the Canada Education Savings Grant and the Canada Learning Bond.
It’s like someone handing you money for your child’s education…and
you’ll be surprised at how quickly that money can grow. Before you can
get money through the Canada Educational Savings Grant or Canada
Learning Bond, you need to open a Registered Education Savings Plan
(RESP). The good news is that opening an RESP is easier than you
might think! Get a Social Insurance Number for yourself and your
child. There is no fee, but you will need some documents (such as a
Birth Certificate) to go with your application. Choose an Registered
Education Savings Plan Provider To open an RESP, you can go to most
banks, credit unions, group plan dealers and certified financial planners
who will meet with you to discuss your plan’s options. Choose
RESP & SOSDgiving education a growing chance
a guide to registered education savings plans that plant possibilities for your child’s future
You Get Money And Your Child Gets Opportunities
Like you, Seven Oaks School Division believes a good education is where great futures
start – and that includes the education your child gets after high school.
That’s why Seven Oaks School Division wants you to know about Registered Education
Savings Plans which are also called RESPs. An RESP is an account you can open to start
saving for your child’s college, university, trade school or other studies after high school.
What’s really great is – in addition to the money you save – the
Government of Canada will add money to your child’s RESP through
the Canada Education Savings Grant and the Canada Learning
Bond.
It’s like someone handing you money for your child’s
education…and you’ll be surprised at how quickly that
money can grow.
1 giving education a growing chance
2giving education a growing chance
Seven OAkS SChOOL DIvISIOn beLIeveS A GOOD eDuCATIOn IS Where GreAT fuTureS STArT
3 giving education a growing chance
How to Open a Registered Education Savings Planbefore you can get money through the Canada Educational Savings Grant or Canada
Learning Bond, you need to open a registered education Savings Plan (reSP).
The good news is that opening an reSP is easier than you might think!
1. Get a Social Insurance Number (SIN) for yourself and your child.
There is no fee, but you will need some documents (such as a birth Certificate) to go
with your application for your SIn. You can apply at any Service Canada Centre.
Check the phone book for locations or call 1-800-206-7218 (select option 3).
2. Choose a Registered Education Savings Plan Provider.
To open an reSP, you can go to most banks, credit unions, group plan dealers and
certified financial planners who will meet with you to discuss your plan’s options.
Choose the provider you are most comfortable with.
3. Choose which kind of Registered Education Savings Plan you want.
Like any type of savings plan, you have a lot of options. You want to make sure you
do what’s best for you and your child.
Your RESP provider can help you, but it’s always good to ask
questions such as:
•Arethereanyfees,noworlater?
•DoIhavetoputaminimumamountin?(WithsomeRESPs
you do)
•DoIhavetomakeregularpayments?(Again,withsome
RESPsyoudo)WhathappensifImissapayment?
•Whataremyinvestmentoptionsandwhatarethebenefits
ofeachchoice?
•CanItransfertheRESPtoanotherpersonorproviderlater
–andwouldtherebeafee?(Ifyouhavemorethanone
child, you might want to ask about a family Plan.)
•CanIwithdrawmoneyearlyifIneedto–andwouldthere
befeesorpenalties?
•WouldtheRESPlimitthekindofeducational
programmychildgoesintoafterhighschool?
•Whathappenstothemoneyifmychilddecides
nOT to go to school after high school or if my
childonlygoespart-time?
•Mostimportantly:doestheRESPprovideaccess
to the Canada Educational Savings Grant
and Canada Learning Bond?
4giving education a growing chance
Adding to Your Registered Education Savings PlanOnceyoudecidetoopenanRESP,youcanstartaddingtoyoursavingsindifferentways:
1. Adding Money Yourself
Some reSPs let you add money whenever you want while others have monthly
payments. Some plans also allow your family and friends to put money in too. That’s
why it’s so important to talk to your reSP provider before you open an reSP – so you
can decide what will work best for you.
2. Investing
Though you can let the money in the reSP collect interest, you can also talk to your
reSP provider about investing that money in bonds, mutual funds, stocks or other
types of investment options. The right investment can help you grow the money in
the reSP faster.
3. The Canada Education Savings Grant
If your child is under the age of 17, you can apply for the Canada Education Savings
Grant.
The grant will add anywhere from $100 to $200 for the first $500 you save, depending
on your family income. If you save more than $500 in your reSP, the grant could add
up to $400 on the next $2000 in the account (the lifetime maximum is $7,200).
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The more you are able to save, the more the Canada
education Savings Grant will add each year.
(Please Note: The Canada Education Savings Grant does
have some rules for children ages 15 to 17. Be sure to ask
your RESP provider to explain.)
4. The Canada Learning Bond
If your child was born after December 31, 2003, AND
you get the national Child benefit Supplement, you can
apply for the Canada Learning Bond.
The Canada Learning bond will add $500 to your child’s
reSP account, no matter how much you currently have
in the account. That’s $500 FOR FREE if you qualify for the
bond.
You could also be given an extra $25 to
cover opening an reSP (if there are costs
involved). PLUS you may qualify to get an
extra $100 per year for your child’s reSP
until your child is 15 years old.
That’s like someone giving you up to
$2,000 for your child’s education,
depending on when you start saving.
(Please Note: To receive the Canada
Learning Bond, the person who applies
must be the same person whose
name is on the National Child Benefit
Supplement cheque.)
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What Happens to the Money If…?The money from the registered education Savings Plan can be used as soon as your
child is enrolled either full-time or part-time in a qualified educational program. That
can include college, university or trade school programs.
but what if your child decides NOTtogotoschoolafterhighschool?Whathappensto
themoneythen?
•Ifyourchildisthinkingaboutgoingtoschoollater,youcansimplyleavetheRESP
open (an reSP can remain open for up to 36 years).
•Ifyouhaveotherchildren,youcouldtransferthemoneytoanotherRESPforthem(as
long as you have a family Plan).
•YoucouldtransferthemoneyintoaRegisteredRetirementSavingsPlan(RRSP)for
yourself (as long as your plan allows you to add the money – and minus any grant
money that has been added).
•Youcouldsimplywithdrawthemoney(thoughtheremaybecertainconditionsand
taxes involved).
It’s important to know that if your child doesn’t go to school after high school any reSP
money from the Canada Educational Savings Grant and Canada Learning Bond will
have to be returned (including interest earned on grant or bond money).
but the good news is all the money you saved yourself is yours to keep*. The money
you save will go to your family one way or another.
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*NOTE:AnyinterestyourRESPmadewillbetaxedwhenyou close your reSP without using it towards education. And the reSP will be taxable once a student uses the money for their education.
ThEMONEYYOuSAve WILL GO TO YOuRfAMIlYONEWAY Or AnOTher
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More RESP Information = The Best RESP For Your FamilyWhen it comes to registered education Savings Plans, the more you know, the easier it
is to make a decision about what will work best for you and your family.
Your reSP provider can tell you about all your options and the benefits of each choice.
but you can also learn more on your own before you meet with any potential reSP
provider.
herearesomeplacestobeginlookingformoreinformation:
OnRESPs:
The Financial Consumer Agency of Canada
Toll-free:1-866-461-3222(English)1-866-461-2232(french)
Website:www.fcac-acfc.gc.ca
OntheCanadianEducationSavingsGrantortheCanadalearningBond:
CanLearn
Toll-free:1-800-O-Canada(1-800-622-6232)
TTYNumber:1-800-926-9105
Website:www.Canlearn.ca
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OnRESPsinManitoba:
The Manitoba Securities Commission
Toll-free:1-800-655-5244foranygeneralinquiries
about reSPs
Website:www.msc.gov.mb.ca
OnapplyingforaSocialInsuranceNumber(SIN):
Toll-free:1-800-206-7218 (select option 3)
Website:www.servicecanada.gc.ca/eng/sc/sin
You can also ask for information and materials on
registered education Savings Plans at your child’s school.
PlEASENOTE:
The information provided in this book is meant
to make you aware of registered education
Savings Plans (also known as reSPs) and their
potential benefits for your child. before making
a decision on reSPs, you should always discuss
your options thoroughly with a qualified financial
professional.
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FOR MORE INFORMATION, CONTACT:
Seven Oaks School Division830 Powers Street
Winnipeg,MBR2V4E7
T:204.586.8061www.7oaks.org/canada_education_resp.aspx
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