The Registered Education Savings Plan (RESP) is a long-term savings plan to help people save for a child’s education after high school, including trade schools, CEGEPs, colleges, universities, and apprenticeship programs. An adult can also open a RESP for themselves.

When you open a RESP, you can ask your financial institution (the promoter) to apply for benefits like the Canada Learning Bond (CLB) and the Canada Education Savings Grant (CESG). If the child is eligible, these benefits will be received in the RESP to help with the cost of the child’s education. Eligible expenses can include tuition, books, tools, transportation, and rent. British Columbia and Quebec also offer provincial benefits.

Canada Learning Bond (CLB) is a government initiative designed to help low-income families save for their child’s post-secondary education. 

The Canada Education Savings Grant (CESG) is a government program designed to encourage parents, family, and friends to save for a child’s post-secondary education. Here are the key details:

• Basic CESG: The government provides a grant of 20% on the first $2,500 contributed to a Registered Education Savings Plan (RESP) each year. This means you can receive up to $500 annually per child.
• Additional CESG: Depending on the family’s net income, there may be an additional grant of 10% or 20% on the first $500 contributed each year, potentially adding up to $100 more annually.
• Lifetime Limit: The maximum CESG a child can receive is $7,200.
• Eligibility: Every child under 18 who is a resident of Canada is eligible. However, specific contribution requirements must be met for children aged 16 and 17 to qualify.
• RESP: The CESG funds are deposited directly into the child’s RESP, which is an account specifically for saving for post-secondary education.