Justwealth’s Chief Investment Officer, James Gauthier, was recently interviewed for an article published by Young & Thrifty about what happens to unused RESP funds when a child doesn’t go to post-secondary education. This is a concern shared by many Canadian parents, and Justwealth and Young & Thrifty are happy to help put their minds at ease.
Q: I’m a parent to a three-year-old and I want to set up a Registered Education Savings Plan. But what happens to the money if my child decides to not pursue post-secondary studies? Is it gone forever or can I get it back?
— A panicked parent
A: First of all, good for you! Choosing to open an RESP can be one of the most rewarding investments that you can make. In addition to opening doors to career paths and increased earning potential for your child, investments in a Registered Education Savings Plan may be eligible for a Canada Education Savings Grant for up to 20% of your annual contribution!
But if your child (the beneficiary) forgoes enrolling in a qualifying post-secondary institution, it’s not a total bust. There are options to make good use of the RESP assets (aka money). The same applies in cases where the beneficiary (or beneficiaries) have completed post-secondary education and there are assets left over in the RESP. Let’s look at the options…
Read more about your options on the Young & Thrifty website!