Gift Their Future: Invest RESP, Not Toys

Avatar of u/FinEducation
u/FinEducation · Joined Oct 2024

Why choose toys that fade when you can build a future that grows? See how investing in RESP can give your child lasting opportunities instead of temporary fun!

Last update Nov 2024
  • Scenario 1: RESP Investment Growth
  • Scenario 2: Toys & Gifts Cost Uninvested
  • Which One Is Higher (%)

See how RESP savings (purple) grow over time, boosted by compound interest and CESG grants, compared to flat costs of uninvested gifts (pink). Investing in RESP clearly builds more value for your child's future.

Age

Try your numbers:

Enter your child’s current age to start planning their RESP growth journey.

A =

Amount you’ll invest yearly in the RESP instead of spending on toys or gifts.

B =
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  • Amount
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  • Cash Flow
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  • Current Asset
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Time Value Assumptions

Heads Up!

If you're using Cost Basis (cb) for calculating capital gains:

Please be aware that very few countries currently use inflation-indexed cost basis. Double-check your local tax rules before publishing.

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How is Cash Value calculated?

This scenario calculates RESP growth by combining annual contributions with the CESG grant and compound interest over time. The result shows how investing in an RESP can build substantial savings for your child's education and future.

Decisions / Expectations

(Expressions are evaluated at Year 0 only.)

C =
D̃ =
Now
Ẽ =
Now

Calculations

(Expressions are evaluated at every year.)

F̃ =
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Add Decision or Expectation
  • Buy Asset
    Buy an asset growing at its own rate.
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  • Invest
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Add Intermediate Calculation
  • Define Variable (Numerical)
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  • Define Variable (Cash Flow)
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