Only one-third of Canadians currently enrolled in a post-secondary program have an RESP, a BMO Financial Group study finds.
The study also found three-quarters of students who had an RESP say it would not have been possible for them to afford post-secondary education without one.
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A four-year university degree can cost upwards of $60,000 including tuition, room and board, books and spending money. For children born in 2013, costs could reach $140,000 by the time they attend a post-secondary institution.
Eighty-four percent of Canadian students without an RESP wish they had one and 91% of those without an RESP say they will set one up for their own children.
One of the key advantages of opening an RESP is the government matching program. The first $2,500 in RESP contributions per year receives a matching 20% Canada Education Savings Grant from the federal government, up to $500 annually.
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“Even contributing as little as $500 per year to an RESP from the time a child is born could result in more than $20,000 saved by the time the child enters college or university. By combining a grant with what you’re already depositing to the RESP, you can make your savings grow substantially,” says Robert Armstrong, vice president, Managed Solutions and Registered Plans Strategy at BMO Asset Management Inc.
Regional Data
| Total | ATL | QC | ON | MB/SK | AB | BC | |
| Students who have an RESP (%) | 36 | 33 | 24 | 39 | 35 | 40 | 47 |
| Students who wish they had an RESP (%) | 85 | 84 | 82 | 85 | 92 | 80 | 92 |
| Students who intend to set up an RESP for their children (%) | 93 | 91 | 90 | 94 | 92 | 93 | 95 |