3. when you have a child, save for their education - RESP

​​​​​As soon as you turn 18/19, you can start saving for all kinds of purposeés in a ​​​​​Tax-free Savings Account (TFSA). This should be your first account. You can open any number of accounts as TFSA accounts. Here's how they work:

​​​1. ​​​​​​Tax deferral on investment income

You'll still pay income tax but only in the year when you withdraw the funds.  


2. No tax deduction on contributions

Your family makes contributions from monies on which they've already paid income tax.


3. Government grants

Canada Education Savings Grant adds 20% of your family's contributions. Low income families are eligible for Canada Learning Bond grant even if they don't make any contributions.

1. ​​​​Tax deferral on investment income earned

You'll still pay income tax but only in the year when you withdraw the funds. Not just on investment income but on the entire amount of withdrawal.


2. A tax deduction in the years you make contributions

​A tax deduction means that you don't have to pay income tax on the money you add to the program that year. This often means you actually get a cash refund soon after you file your tax return.​​​


​3. No special government grants

When you have children, you can start saving for their post-secondary education from the year they're born.  The government program that makes it easier is called ​​​Registered Education Saving Plan (RESP). Not only does it provide tax benefits but also allows you to receive certain government education grants. Here's how it works.

1. Your investing Bread and butter - TfSA

 wHILE YOU'RE IN HIGH SCHOOL / COLLEGE / UNIVERSITY  -  take care of your RESP

2. when you're making enough money, start saving for retirement - RRSP

​​When you work, you are entitled to save a portion of your earnings in a Registered Retirement Savings Plan (RRSP).


Under certain circumstances you can use the funds when you buy your first house or to help fund your education. Here's how they work:


Your family may have saved money for you in a ​​​Registered Education Saving Plan (RESP). This account provides tax benefits and allows you to receive certain government education grants.


Ask your family / primary caregiver if you have a RESP.

  • If you don't and are <15, you may be able to receive a portion of the government grant - even if your family hasn't contributed.
  • If you're 16 or 17 and have a RESP that has not been fully utilized, you may still be time to contribute and receive​.
  • If you're 16/17 and don't have a RESP, there's nothing you can do to catch up.

​1. No tax on investment income earned

No matter when you withdraw the money, you won't have to pay income tax on the income earned. Ever​​.


​​2. No tax deduction on contributions

You make contributions from monies on which you've paid income tax.


3. No special government grants

Investment income is taxable.  ​
​You can earn tax-free income or delay paying tax 
by opening saving & investment accounts as registered accounts. 

Registered accounts are supported by government tax-shelter programs. They make it easier to save because of income tax benefits they provide.


They are called 'registered' because banks / financial institutions must register them with the federal government so that the CRA (Canada Revenue Agency) can monitor the tax benefits you get.


Any savings or investment account at a bank / another financial institution can be opened either as a registered account.​

registered accounts


If you have a RESP, keep contributing until you turn 18. After that it's your job to learn to efficiently withdraw money from it​.