DCHP-2

Registered Education Savings Plan RESP DCHP-2 (June 2016)

• n. — Finance, Administration

  an investment program for parents or other qualified individuals to save for their children's post-secondary education.

  Type: 1. Origin — The Registered Education Savings Plan was introduced in 1972 (see CGA website and the 2010 quotation). It functions as a contract between a subscriber (usually a parent) and a promoter (a financial institution). The subscriber names at least one beneficiary (usually his or her child(ren)) and makes contributions on their behalf, which grow in the account tax-free until the beneficiary can withdraw the money at the age of 18 when he or she enrols in a post-secondary institution. As Chart 1 shows, the term is virtually limited to Canada.
  See also COD-2, which lists the term's abbreviation (s.v. "RESP"), as "Cdn".

  See also: RESP  

  • As with other Canada-backed financial products, such as RRSP or GIC, the letter abbreviation is the more commonly used form.