Almost half of parents have yet to open an RESP, finds a survey by Chartered Professional Accountants of Canada (CPA Canada).
“The RESP program is structured to help grow education savings with the assistance of a government grant tied to your contributions,” says Cairine Wilson, vice-president, corporate citizenship, CPA Canada. “The greater the window of opportunity for saving the more money that can be accumulated.”
According to the survey, 53% of the participating parents have an RESP. The program can be used to finance education at a college or university in Canada or abroad. It can also be used for skill development at educational institutions in Canada certified by the Minister of Employment and Social Development Canada.
“A lack of awareness, budget challenges or work schedules could all be factors why a significant number of parents are not taking advantage of the RESP program,” explains Wilson.
Additional findings include:
- eight-in-ten parents surveyed have started saving for a child’s post-secondary education;
- 75% of respondents actively saving believe they’re on the right track to have enough money to cover education costs; and
- 86% of respondents with children expressed confidence in having the financial knowledge and skills required to adequately save for a child’s post-secondary education.