Summary of "What is an RESP | CST Savings"
The video explains the benefits and features of a Registered Education Savings Plan (RESP) as a financial strategy for parents to save for their child's post-secondary education. Key points include:
- RESPs allow parents to save money that grows tax-free until withdrawal.
- Contributions qualify for government grants, notably the Canada Education Savings Grant (CESG), which adds 20% of contributions up to $500 annually, with a lifetime maximum of $7,200 per child.
- Funds can be withdrawn once the child enrolls in post-secondary education to cover expenses such as tuition, rent, books, and other costs.
- RESPs can be used for various types of post-secondary education both in Canada and abroad.
- Starting early is emphasized due to rising tuition costs.
- The video promotes opening a CST RESP account with a low minimum monthly contribution of $9.50.
Presenter/source:
Category
Business and Finance
