A Registered Educations Saving Plan (RESP) is an effective way of saving for the cost of a child’s post secondary education. The maximum contribution allowed for each child within an RRSP is $50,000. The Government matches contributions with the Canada Education Savings Grants up to a maximum of $7,200 per child.

The growth on the savings is tax deferred and the accumulated assets are withdrawn during the period the child attends post-secondary education. A more complete account of RESPs is available from a variety of sources. We examine the potential of the RESP to meet the future costs of higher education given the recent history of tuition fees increasing above the general rate of inflation.