Why the RESP is Outdated, and Where to Invest Instead


Millennial Parents’ Guide to Financial Planning

Are you feeling frustrated with the rigid rules defined by the government’s Registered Education Savings Plan (RESP)?

If so, you’re not alone.

The RESP is outdated. It’s a government program that was created for our parents, but the next generation needs something entirely different.

The costs of education for children born in 2012 will rise to $140,000 for a four-year undergraduate degree, a BMO study explains. If this is the case, will the $7,200 parents receive in government grants after depositing $36,000 in an RESP even be relevant anymore?

The majority of young parents don’t think so. Instead, these numbers make an undergraduate degree feel absolutely out of reach for their child—at least without the insurmountable weight of the student debt that comes with it.

These are the same parents who are yearning for some flexibility on what else they can do to help their child build a solid financial future. They recognize that RESP funds can only be used for educational purposes, and are only granted for approved universities and education programs.

But what if your child isn’t planning to go to university right out of high school? What if your son wants to travel abroad for school? What if your daughter wants to start her own business?

There is a better way.

Child Plan is the fastest growing alternative to the RESP, and the only tax-free investment parents can open for their children in Canada. The money you invest with Child Plan can be used to pay for any education program in the world or to support any other financial need in life.

Today’s parents are not just looking to safeguard their child’s future; they want to give them the freedom to decide what that future entails.

Child Plan™ is Canada’s fastest growing alternative to RESP. It’s a secure and flexible way to invest in your child’s future.

Sample illustration of Child Plan™ Cash and Insurance Values

Based on a Deposit of $225 per month

AgeAccumulated Cash ValueLife Insurance Value
21$77,369 (Education)$585,633
35$188,297 (House)$963,104
45$335,046 (Security)$1,247,642
65$977,644 (Retirement)$1,979,475

1. Sample illustration is based on a $225 monthly premium for twenty years, starting when the child is less than 2. Cash and life insurance values are based on the current dividend scale of 6.35% from a Canadian Life Insurance Company. 3. This example is strictly for illustrative purposes only, the annual dividend scale is not guaranteed and values may differ.

Personalize Your Child Plan™

Request a Child Plan™ Illustration and see how much cash value your child will have for their education and for life.

Request Illustration

*illustrations are reflective of the annual premium amount

Have a Question?

Let’s Talk!

Connect with our family advisors to get started.