Everything you need to know about RESPs — in plain English.
A Registered Education Savings Plan (RESP) is a tax-sheltered account for a child’s post-secondary education. The government adds the Canada Education Savings Grant — 20% of what you contribute, up to $500 a year and $7,200 for life per child (canada.ca). Lower-income families can also receive the Canada Learning Bond of up to $2,000 with no contribution required.
Figures on this page are verified against canada.ca.
What is an RESP?
An RESP is a tax-sheltered savings account that helps you save for a child’s education after high school — and the government adds money to it. That government top-up is what makes an RESP different from an ordinary savings account.
Your contributions aren’t tax-deductible, but the money grows tax-sheltered inside the plan. When the child starts post-secondary studies, the withdrawals are taxed in the student’s hands — and since most students earn little, that usually means little or no tax. Anyone can open one: a parent, grandparent, or family friend.
How much does the government actually add?
The government tops up your contributions with grants — the biggest is the Canada Education Savings Grant (CESG).
Basic CESG
The government matches 20% of what you contribute — up to $500 a year, and $7,200 over the child’s lifetime.
Additional CESG
Lower- and middle-income families get an extra 10–20% on the first $500 contributed each year.
Canada Learning Bond
Eligible lower-income families receive up to $2,000 — with no contributions required at all.
What can RESP money be used for?
Far more than university. An RESP can fund almost any recognized program after high school:
- University degrees
- College and CEGEP programs
- Trade schools and apprenticeships
- Many part-time and distance-education programs, and some studies abroad
The money can go toward tuition, books, tools, housing, and transportation — the real costs of getting an education, not just the classroom.
What if my child doesn’t go to school?
You have options — the money isn’t simply lost. If your child doesn’t pursue further education right away, you can:
- Wait. An RESP can usually stay open for about 35 years — plenty of time for a change of heart.
- Transfer it to a brother or sister.
- Move the growth to your RRSP if you have the room and meet the conditions.
- Withdraw your own contributions — those are always yours.
Only the grant money is returned to the government, and only if it’s never used for education. Your contributions stay yours.
RESP vs TFSA: which one should your education money go into?
For education savings, the RESP usually wins — because of the grants.
An RESP is built for one job: paying for school after high school. What you put in is not deducted from your income, but it grows without tax while it sits there. The reason most families start here is the government grant — the federal government adds money to an RESP when you contribute. A TFSA gets no grant at all. That grant is the whole difference.
A TFSA is built for flexibility. The money grows tax-free, you can take it out for anything at any time, and the room comes back the following year. There is no grant, and nothing about it is tied to school.
A TFSA may be the better fit when:
- You are not sure the money will be used for school.
- Your child may not go on to college, university or a trade program.
- You have already put in enough to collect the grant you are eligible for this year.
- You want the money available for something else if plans change.
An RESP may be the better fit when:
- The money is meant for school after high school.
- Your child is young, so there are years of grant room ahead.
- You want the growth sheltered from tax until it is taken out.
Many families use both. The usual order is to put money in the RESP first, up to the amount that collects the grant for that year, then put anything left into a TFSA. That way no grant money is left behind, and you still have money you can reach for any reason.
An RRSP is a third option, but it is built for retirement, not school — taking money out early adds it to your income for that year.
Grant amounts, income tests and lifetime limits are set by the federal government and can change. Check the current rules on canada.ca, or book a free call and we can go through your family’s numbers together.
Harpreet Singh is licensed in Ontario for life insurance and segregated funds. Mutual funds, ETFs and other investments that can be held in a TFSA are outside that licence and are referred to an appropriately licensed party.
How do I choose the right RESP?
The account you pick matters less than two things: claiming every grant you’re owed, and avoiding the plans that trap you. Broadly, there are three routes:
- Do it yourself through a discount brokerage — lowest fees, but you manage the investments and the grant paperwork.
- A robo-advisor — hands-off and low-cost, but no human to plan around your family.
- An LLQP-licensed insurance advisor — guidance on the plan that fits your family, and someone who makes sure every grant is applied for.
RESP questions parents ask most
How much can I contribute to an RESP?
When should I open an RESP?
Can grandparents open an RESP?
Do I get the government grant automatically?
Is an RESP worth it if my income is low?
Until what age can a child get the CESG?
Have a question that isn’t here? Ask on a free call →
Start your child’s RESP with an LLQP-licensed insurance advisor.
Get your exact numbers, claim every grant you qualify for, and set it up right — with a real person who makes it simple.
Every rule, deadline and plan decision covered on this page is set out in more depth in the RESP guides.
Harpreet Singh · LLQP-Licensed · Life Insurance & Segregated Funds · Ontario · Proudly Canadian. This page is general information only — not financial, investment, insurance, or tax advice. RESP rules and government grant amounts are set by the Government of Canada and may change; figures are per Canada.ca. Speak with a qualified advisor about your own situation.
An education fund is the start. Here’s the rest of the plan.
RESPs are where most families begin — but the same licence that helps you claim every grant also covers the protection and savings around it.
Harpreet is an LLQP-licensed insurance advisor based in Ontario, Canada. He helps families understand RESPs in plain language, claim every government grant they qualify for, and protect the plan with the right coverage — with straight answers and no pressure. More about Harpreet →