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RESP & Children’s Saving Plans

Government grants add up to $7,200 per child toward post-secondary education — only available inside an RESP.

An RESP is a tax-deferred account for a child’s post-secondary education, with a $50,000 lifetime contribution limit per beneficiary.

The federal Canada Education Savings Grant adds 20% on the first $2,500 contributed each year (up to $500/year), to a lifetime maximum of $7,200 per child — free money that’s only available through an RESP.

Lower-income families may also qualify for the Canada Learning Bond and additional CESG top-ups.

Lifetime contribution limit
$50,000

Per beneficiary

Basic grant (CESG)
20%

On the first $2,500 contributed each year

Maximum grant per child
$7,200

Lifetime CESG

Canada Learning Bond
Up to $2,000

For eligible lower-income families, no contribution required

The grant is the reason to prioritise this account

Contributing $2,500 in a year attracts $500 from the federal government. That is an immediate 20% return before any investment growth, and it is available nowhere else.

If you have missed years, you can catch up on one prior year at a time — meaning a $5,000 contribution can attract $1,000 in grant money in a single year. Because the grant stops entirely at the end of the calendar year the child turns 17, unclaimed years are permanently lost.

Additional support for lower-income families

  • An additional CESG of 10% or 20% on the first $500 contributed each year, depending on adjusted family net income
  • The Canada Learning Bond pays up to $2,000 with no personal contribution required at all
  • Several provinces offer their own top-up programs alongside the federal grants

How the money comes out

Withdrawals split into two parts. Your original contributions come back tax-free, since they were made with after-tax dollars. The grants and accumulated growth are taxed in the student’s hands — typically at a very low or zero rate, given student income levels.

A family plan covering multiple children lets grants and growth be shared between beneficiaries, which adds flexibility if one child does not pursue post-secondary education.

Worth checking before you decide

  • A Social Insurance Number for the child is required before the account can be opened
  • There is no annual contribution cap, but grants are only paid on the first $2,500 each year, so front-loading the full $50,000 forfeits most of the grant
  • Grant eligibility ends after the calendar year the beneficiary turns 17
  • If no child attends post-secondary, grants are returned to the government and growth can face additional tax unless rolled into an RRSP

Common questions

What if my child does not go to college or university?

Your contributions come back to you tax-free. Grant money is returned to the government, and accumulated growth can often be transferred to your RRSP if you have room, which avoids the additional penalty tax.

Does an RESP cover trade schools and apprenticeships?

Yes. Eligible programs are broader than most people assume, including many trade schools, apprenticeships, and CEGEP programs, not just universities.

Can grandparents open an RESP?

Yes, anyone can be a subscriber for a child. Coordinating with the parents matters, though, because grant and contribution limits are tracked per beneficiary across all plans.

Important

This page provides general information only and is not personalized financial, tax, or legal advice. Product features, availability, and eligibility vary by provider. Figures shown are for the 2026 tax/benefit year and are subject to change — book a conversation with Supriya to confirm what applies to your situation.

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