Benefits of investing in an RESP


Many parents are unaware of the money they can access and the opportunities they have to save for their child’s post secondary education. And, with the current market volatility, many are skeptical about relying on public market investing. However, economic downturns underscore the importance of higher education, the importance of saving, and saving wisely, for higher education.

Group Registered Education Savings Plans (RESPs) are a great education savings tool to consider. Group plans are education savings plans with a scholarship plan dealer where regular contributions are pooled with those of other plan holders with children of the same age. They are safe and effective savings vehicles, but they are not the only investment option available for parents; there are also individual plans held at financial institutions, where the plan holder or a financial or investment advisor manages the investments. “While some people are comfortable with a certain degree of market volatility, when it comes to education savings, a great number of parents don’t want to take that risk,” says Peter Lewis, Vice-President Regulatory &
Corporate Affairs with the Canadian Scholarship Trust Foundation. “A group plan is suited to parents who want a predictable schedule for contributions over the life of the plan and want to be sure their money will be there when their child is ready to attend a post-secondary school.”

One of the benefits of group savings plans, such as those offered by Canadian Scholarship Trust Foundation, is the conservative investment approach which protects your principal and delivers a solid return. Unlike equity-based self-directed individual plans, group RESPs generally invest the overwhelming majority of plan assets in bonds that offer consistent returns that compound over time. They are safe options that work without being exposed to the levels of risk associated with equity investments.

Ultimately, the decision about which savings vehicle to choose is up to the parent. The key is to know what the options are and how to use them in order to maximize their potential. By doing research, parents can educate themselves about the steps they can take to help guarantee their children have the resources they need for their post-secondary education.
More information on this topic is available online at or toll-free at 1-877-333-7377.





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