Financial Articles

RESP Opportunities for Youth Athletes

By November 26, 2014 May 28th, 2018 One Comment
RESP for Athletes

What can you do with your RESP if your child receives a Sports Scholarship?

RESP for youth athletes

If you invest in a Registered Education Savings Program (RESP)

What happens to the funds if they receive a Sports Scholarship?

Here’s how you can maximize the time you have spent, developing your youth athlete…

Youth sports here in Canada is one of the greatest ways to develop our children. No matter what your sport is, whether it is Baseball, Football, Hockey, Soccer or countless other sports in our community, there is always the thought in the back of a parents mind. What if he goes Pro?

It would be the dream of a lifetime, for both the child and the parents respectively. The opportunity to do something you love, and to be able to be the best at what you do.

But as a responsible parent, you are more than likely putting some money away every single month to fund their future Education Cost, but what happens to that money if your child gets a Sports Scholarship, and doesn’t need the funds?

Let’s Dive into the Details…

 What are the Typical Ways to fund your Child’s Post Secondary Education? 


  1. You can take advantage of an RESP to save for the future education costs, by using an RESP you get a 20% Bonus to your account from the Government, each and every month that you contribute (up to a maximum of course)

  2. You can Invest in a TFSA (Tax Free Savings Account) where your money will grow in a Tax Deferred Environment, and when you withdraw the funds there is no Income Tax Due.

  3.  You can use a Dividend based Investment Grade Life Insurance Policy which generates a Cash Value available for your child at education time.

  4. You can withdraw the funds from your own RRSP.

  5. You can apply for Student Funding at the time of Education.

  6. Work hard in Sports and Academics to potentially be awarded a full or partial Scholarship

Here are 3 things you can you do with your RESP if your child receives a Scholarship

Don't worry about that RESP, there is value in contributing to it on a regular basis, even if you are working towards a Scholarship

  Option 1. Let the funds sit and grow inside the RESP.

An RESP can stay open for up to 35 years, so this gives your child the opportunity to go to school after their Sports career, or continue on learning and specializing in their education long after their sports career ends. It is very typical for a school to fund the first 4 years of a University degree, but if your child chooses to continue on to get a Masters or a Doctorate, the funds are there and may be used at that point.

  Option 2. Withdraw the money from the RESP as Income.

You or your child may take the proceeds out of the RESP as Income. When you do this, all of your own contributions are returned back to you Tax Free. But at that time, you must return Contributions made on behalf of the Government. And finally you must pay a 20% penalty on the interest growth that has accumulated. This at least guarantees you will receive back all of your money, plus even the majority of the interest made over the life of the RESP.

  Option 3. Transfer the Funds to your RRSP.

If you have been diligent in Saving for your Child through an RESP and they do not need all of it, or any of it, do not worry. You may transfer up to $50,000 of the RESP into your own RRSP, assuming you have the room. You can also transfer the funds into a Spousal RRSP. This is the most flexible option, and is a great way to take advantage of your hard work and diligent saving over the years. This is the reward for all of Your commitment!

RESP’s are so Flexible, that they should be part of every Family’s Financial Plan.

Create Money

Understand that it is just as important to pay yourself, as it is to pay your Mortgage! In both cases you are creating an asset for your future. If you pay yourself consistently every single month, you put YOUR Money in motion. Setting up a monthly PAC is so easy, and you can start small and grow at your own pace. As you contribute on a monthly basis, you are Dollar Cost Averaging, which is the most effective way to invest…

Protect your Income

Above all, You are the most important part of your Financial Future. If you cannot earn an income due to illness, sickness or tragedy, then the whole plan falls apart for your family. Protecting your income is just as important as making an Income.

Manage the Growth

Once you start your Plan, it is now time to manage the growth. By using a holistic approach to Insurance and Investments, you will have a clear overview of your Financial Future, Guaranteed! When you have a plan in place, we will guide you through the future, and do all the hard work on your behalf, and provide you with ongoing solutions, as opportunities arise, or tax laws change. We are your Partners in Success.

Tips for your RESP  Success

5 Ways to Supercharge your RESP

Contribute Monthly

Take advantage of the Government Grants

Invest in Growth oriented Funds

Sign up Grandparents and Godparents to contribute as well

Start young, compounding will do the rest

Send us an email Today

Call for your Free review today!


Learn even more about RESP’s Here…

Steffen deGraaf

About Steffen deGraaf

Insurance and Investing can be very complex and my aim is to decipher the jargon and provide clients with a tailor made solution to fit them and their specific needs. There’s not a ‘one size fits all’ with Insurance and Investing your hard earned money in the right place. Infinity Insurance has a unique Platinum Service Promise ensuring clients get outstanding service, valuable support, and integrity, all in the most affordable way possible.

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