undefined

Opening an RESP for Your Newborn: Why Earlier Is Better

Opening a Registered Education Savings Plan (RESP) for your newborn is one of the smartest financial decisions Canadian parents can make. The combination of compound growth over 18 years and generous government grants makes early RESP contributions incredibly powerful.

The Power of Starting at Birth

Contributing $2,500 per year from birth qualifies your child for the maximum Canada Education Savings Grant (CESG) of $500 annually. Over 18 years, this means $9,000 in free government grants plus compound investment growth. A family that starts at birth versus waiting until age 10 could accumulate nearly double the savings by the time their child reaches university.

RESP Investment Options for Newborns

With an 18-year time horizon, newborn RESPs can take advantage of growth-oriented investment strategies. As your child ages, the portfolio gradually shifts to more conservative holdings. Apluswealth advisors create age-appropriate investment strategies that maximize growth in early years while protecting savings as post-secondary education approaches.

Additional RESP Benefits Many Parents Miss

Lower-income families may qualify for the Canada Learning Bond (CLB), which provides up to $2,000 in additional government contributions with no personal contribution required. Provincial grants in some provinces add even more. Our advisors ensure your family accesses every available benefit, maximizing the value of your child’s education savings plan.