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).

5 giving education a growing chance

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.)

6giving education a growing chance

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.

7 giving education a growing chance

*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

8giving education a growing chance

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.

10giving education a growing chance

FOR MORE INFORMATION, CONTACT:

Seven Oaks School Division830 Powers Street

Winnipeg,MBR2V4E7

T:204.586.8061www.7oaks.org/canada_education_resp.aspx