RESP

What Is an RESP?

A Registered Education Savings Plan (RESP) is a tax-sheltered account designed specifically for saving towards a child’s post-secondary education. The Canadian government provides grants that boost your savings — essentially free money toward your child’s future.

Government Grants

Canada Education Savings Grant (CESG)

• 20% match on the first $2,500 contributed per year = $500 free per year
• Lifetime maximum grant: $7,200 per beneficiary
• Additional CESG available for lower-income families
• Eligibility Age: Grants are available until December 31 of the year the child turns 17.

Canada Learning Bond (CLB)

• Available to lower-income families
• Up to $2,000 in grants with no contribution required

How It Works

1. Open an RESP and name a beneficiary (your child or grandchild)
2. Contribute up to $50,000 lifetime per beneficiary
3. Government deposits CESG grants into the account
4. Investments grow tax-deferred inside the plan
5. When the child enrolls in a qualifying post-secondary program, withdrawals (Educational Assistance Payments) are taxed in the student’s hands — typically at a very low rate

What Qualifies as Post-Secondary?

University, college, trade schools, apprenticeship programs, and some distance education programs — in Canada and abroad.

What If My Child Doesn’t Go to School?

Contributions can be withdrawn (grants are returned to the government). The investment growth can be transferred to your RRSP if you have room, or withdrawn and taxed.

The earlier you start, the more government grants you collect. Book a consultation to open an RESP.