The Canadian government gives individuals contributing to a RESP a helping hand!
Whatever you contribute to your RESP, the government will give you a 20% match on your money; the government will match up to $500 total each year. Over the lifetime of the account, the Canadian government will pay out $7,200 in matching funds.
Additionally, according to Money Sense, lower- and middle-income families can potentially access additional money over the initial 20% match. Lower- and middle-income families can potentially gain from the fact that the Canadian government will pay out another 20% on the first $500, bringing the contribution for the year up to 40%.
This is one of the biggest reasons why a RESP can help you financially. Even if you “only” get the minimum match, you will have at least $7,200 extra dollars at payout time that you didn’t have before. This essentially accounts as the average cost of one year in college for most students. This makes a lot of financial sense for any family and can take financial pressure off of a lot of Canadians that want to put a child in their family through school.