You put in $2,500 a year.
The government puts in $500.
Your child's education starts with money
that did not cost you anything.
The Registered Education Savings Plan is the only account in Canada where the government matches your contributions. Every family with a child should have one open as early as possible.
HOW AN RESP WORKS
It is the only registered account where the government contributes alongside you.
You open an RESP and name your child as the beneficiary. You make contributions into the account. The federal government automatically adds a Canada Education Savings Grant equal to 20% of whatever you contribute in a year, up to $500 per year per child.
The money inside the account grows tax-sheltered. When your child enrolls in a qualifying post-secondary program, they can start drawing on the account. The grants and the investment growth are paid out as Educational Assistance Payments, which are taxed in your child's hands at their rate. Since most students have very little other income, the tax is usually minimal or zero.
If you contribute $2,500 every year from the time your child is born, you will collect the full $500 grant each year for 14 years, reaching the $7,200 lifetime grant maximum. That is free money the government adds to your child's education without you doing anything other than saving at a consistent pace.
Open your child's RESPThe grant math: $2,500/year from birth
Contributing the grant-maximizing amount every year
Government's total contribution to your child's education
$7,200
Free. No repayment required. Collected automatically when you contribute.
GRANTS AVAILABLE IN YOUR RESP
The government offers three separate grants. Many families leave money on the table by not knowing all three exist.
Canada Education Savings Grant (CESG)
$500/year
Up to $7,200 lifetime per child
The federal government matches 20% of your annual contributions on the first $2,500 you put in. Available to every Canadian family regardless of income. If you contribute less than $2,500 in a year, the grant is proportionally smaller.
Additional Canada Education Savings Grant
$100 to $200/year
On top of the basic CESG
Families with lower net income receive an extra 10% or 20% grant on the first $500 contributed each year. This is in addition to, not instead of, the basic CESG grant. Even a small contribution unlocks it.
Canada Learning Bond (CLB)
Up to $2,000
No contribution required to receive it
Eligible lower-income families receive $500 in the first year the RESP is open, plus $100 for each additional year they remain eligible, up to age 15. The child does not need you to contribute anything to the RESP to trigger it.
HOW THE MONEY MOVES
From your first contribution to your child's first tuition payment, here is every step.
Open the RESP
You open an RESP with a financial institution and name your child as beneficiary. No minimum contribution to open.
Contribute
Contribute any amount, any time. Aim for $2,500/year to maximize the $500 annual grant. Lifetime limit is $50,000 per child.
Government adds grants
CESG, Additional CESG, and CLB are deposited automatically by the government after each contribution or grant assessment.
Investments grow
Contributions, grants, and interest compound inside the account, sheltered from tax until withdrawn. Growth accelerates over time.
Child withdraws for school
Grants and growth are paid as EAPs, taxed in the student's hands at their rate. Contributions are returned to you tax-free.
What qualifies as a post-secondary program?
University and college degree programs, college diplomas and certificates, trade and vocational programs, apprenticeships, and certain other qualifying full-time and part-time programs at accredited institutions. It does not have to be a four-year university degree. Trades, community college, and technical training all qualify.
CHOOSING THE RIGHT PLAN TYPE
Individual plan or family plan. The difference matters more when you have more than one child.
Individual RESP
One plan, one child
An individual RESP names a single beneficiary. It can be opened by anyone: a parent, grandparent, aunt, uncle, or family friend. The subscriber and beneficiary do not need to be related.
- Any subscriber can open for any child with a valid SIN
- No restriction on the subscriber-beneficiary relationship
- If the child does not pursue post-secondary education, the beneficiary can be changed to another child
- Useful for grandparents opening plans for grandchildren
Family RESP
One plan, multiple children
A family RESP can name multiple beneficiaries, but all must be related to the subscriber by blood or adoption. Contributions and grants can be used by any sibling in the plan.
- Useful when you want one plan for all your children
- If one child does not go to school, the other siblings can use the funds instead
- Reduces administrative paperwork compared to opening separate plans for each child
- CESG grants can only be used by the child they were earned for, but contributions and growth can be shared
COMMON QUESTIONS
What parents ask before opening an RESP.
Your contributions are always returned to you tax-free. Government grants are returned to the government. The investment growth can be transferred to your RRSP if you have available contribution room (up to $50,000 lifetime per RESP), or withdrawn as an Accumulated Income Payment, which is added to your income for that year and subject to an additional 20% penalty tax. The best outcome if your child does not attend school is to change the beneficiary to another child, or wait to see if the original beneficiary enrolls later. RESPs can remain open for 35 years.
There is no minimum age. You can open an RESP as soon as your child has a Social Insurance Number, which parents typically apply for shortly after birth. Opening it early matters because the CESG is available until the end of the year the child turns 17, but the grant room accumulates from birth. Starting in the first year of life means more years of compounding and more opportunities to collect the full $500/year grant. Families who open later can catch up by contributing $5,000/year to collect $1,000/year in CESG for up to three years of catch-up.
Yes. Anyone can open an individual RESP for any child with a valid SIN, regardless of relationship. A grandparent, aunt, uncle, or family friend can all be the subscriber. The government grants still apply as long as the beneficiary is a Canadian resident. If multiple people plan to contribute to the same child's education, it is usually simpler to have one family RESP and coordinate contributions, since the lifetime limit of $50,000 applies across all RESPs opened for the same beneficiary.
Yes. Both you and your child must be Canadian residents and have valid Social Insurance Numbers. Once you have those, you can open an RESP and begin collecting grants. For the Canada Learning Bond, eligibility is based on your family's net income as assessed by CRA, and you need to have filed a Canadian tax return. If you arrived recently, it is worth opening the RESP as soon as possible because some grant eligibility has age cutoffs: CESG cannot be collected after the year the child turns 17, and CLB stops at age 15.
Contributing $2,500 per year from birth maximizes the basic CESG grant, giving you $500/year for up to 14 years to reach the $7,200 lifetime maximum. If you missed years, you can contribute $5,000 in a single year to collect $1,000 in grants and catch up one missed year at a time. Contributing more than $2,500 in a year does not generate additional CESG beyond the $500 cap, though it still grows inside the account. If you can afford to contribute a lump sum, consider spreading it across the right years to maximize the annual grant each time rather than front-loading above the CESG threshold in a single year.
YOUR ADVISOR
Mukosolu Blessing Ezeife
Licensed Life Insurance Agent, Greatway Financial
I see a lot of families who have heard of the RESP but keep putting it off. Every year you wait is a year of government grants that cannot be recovered after age 17. For newcomer families especially, getting this set up in the first year of your child's life makes a real difference by the time tuition arrives.
I help families understand which plan type makes sense, what contribution pace maximizes the grants, and how the RESP fits alongside a life insurance plan that protects the family if something happens to the parent funding it. The consultation is free.
Book a Free ConsultationEvery year without an RESP is a year your child's education fund missed free government money.
The grants do not retroactively appear. They are collected year by year, starting from when the account is open. Starting today costs nothing and takes 30 minutes.
Open Your Child's RESP TodayMukosolu Blessing Ezeife is a Licensed Life Insurance Agent operating under Greatway Financial (MGA). Licensed with FSRA (Ontario) and AIC (Alberta). © 2026 Ezeife Financial. All rights reserved.
