RESPs in Canada: A Parent's Guide to Saving for Post-Secondary Education
September brings a lot of reminders that children don't stay little forever.
New backpacks appear by the front door. School calendars fill up. Parents discover that apparently every child needs a completely different set of supplies.
And somewhere between the permission forms and after-school activities, you may suddenly realize:
Post-secondary education isn't actually that far away.
If you're saving for a child's future education, September is a good time to take another look at your Registered Education Savings Plan, or RESP.
An RESP is a government-registered plan designed to help families save for a child's education after high school. It can be used for qualifying post-secondary education, including programs at universities, colleges, trade schools, CEGEPs and apprenticeship programs.
And one of the biggest reasons RESPs are worth understanding is that eligible government education savings incentives can add money to the plan.
What Is an RESP?
A Registered Education Savings Plan is an account designed specifically for education savings.
The person who opens the RESP is called the subscriber, while the child or other person named to receive the educational assistance is the beneficiary.
When an RESP is opened, the subscriber can apply for government education savings benefits if the beneficiary qualifies.
The two major federal incentives include the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB).
These programs have different eligibility requirements, so understanding the distinction is important.
How Does the Canada Education Savings Grant Work?
The Canada Education Savings Grant is one of the most important pieces of the RESP conversation.
The basic CESG provides 20% on the first $2,500 of annual RESP contributions, up to $500 per year per eligible beneficiary.
There can also be an additional CESG amount for eligible children from low- and middle-income families.
For 2026, the Government of Canada lists the additional CESG as:
An additional 20% on the first $500 contributed for families below the applicable income threshold
An additional 10% on the first $500 for families in the next income range
The exact income thresholds are indexed and can change, so families should check the current Government of Canada information when determining eligibility.
The lifetime maximum CESG is $7,200 per eligible beneficiary.
That's a pretty important number to know.
What Happens If You Didn't Start Saving When Your Child Was Little?
This is one of the questions parents ask frequently:
"Did we miss our chance?"
Not necessarily.
Unused CESG room can carry forward.
If you did not receive the maximum CESG in a previous year, you may be able to catch up in a later year by making additional RESP contributions, subject to the program's rules. The maximum CESG that can generally be received in a single year when catching up is higher than the regular annual maximum.
There are also specific rules for beneficiaries who are 16 or 17 years old.
For a child to receive CESG at ages 16 or 17, certain contribution requirements must have been met before the end of the calendar year in which the child turned 15.
This is one reason starting the RESP conversation earlier can be helpful.
What Is the Canada Learning Bond?
The Canada Learning Bond is another federal education savings incentive.
Unlike the CESG, personal contributions to an RESP are not required to receive the CLB.
The CLB can provide up to $2,000 per eligible child, subject to the program's eligibility requirements.
Eligibility is based in part on family income and other requirements.
This is worth knowing because some families may assume that if they aren't able to make regular RESP contributions, there is no reason to open an RESP.
That isn't necessarily the case.
If you're unsure about your child's eligibility for the Canada Learning Bond, it is worth checking the current Government of Canada requirements.
Who Can Open an RESP?
Another common misconception is that an RESP is something only a parent can set up.
That's not the case.
RESPs can be opened by individuals who want to save for a child's education, and government information specifically recognizes parents, family members and friends as people who may contribute to an RESP.
That means grandparents, for example, may also want to consider education savings as part of their financial planning.
The important part is understanding how contributions and government incentives work within the specific RESP.
What Can RESP Money Be Used For?
An RESP is intended to help with education after high school.
Qualifying programs can include:
University
College
Trade school
CEGEP
Apprenticeship programs
Other qualifying post-secondary education programs
The Government of Canada provides specific rules around educational assistance payments and eligible programs and expenses.
And here's another useful thing to know:
A child doesn't have to attend a traditional four-year university for an RESP to be useful.
The future might involve a university degree.
It might involve a college diploma.
It might involve a skilled trade.
It might involve an apprenticeship.
The education landscape is much broader than it was for many previous generations.
What If Your Child Doesn't Go to Post-Secondary School?
This is another question that can make parents hesitate about starting an RESP.
"What if they don't go?"
The Government of Canada provides several options for managing an RESP if the beneficiary does not pursue post-secondary education, including keeping the RESP open for future studies, changing the beneficiary in certain circumstances, transferring funds to another registered savings plan when permitted, or closing the RESP. The tax and repayment consequences depend on the situation.
The rules can become quite specific, so this is an area where getting advice before making a withdrawal or transfer is important.
How Much Should You Contribute to an RESP?
There isn't one magic contribution amount that works for every family.
Some families contribute regularly throughout the year.
Some make larger contributions when their household budget allows.
Some grandparents contribute.
Some families receive government incentives that supplement their own contributions.
The important thing is to start with your actual financial circumstances.
You don't need to compete with another family.
You don't need to have the entire cost of university sitting in an account tomorrow.
And you don't need to predict exactly what your child will become.
You can simply start by understanding the options.
Why September Is a Great Time to Review Your RESP
September naturally gets families thinking about education.
That makes it a useful annual reminder to ask:
Are we still on track with our education savings?
Take a look at:
Your current RESP balance
Your contributions
The CESG you've received
Any unused grant room
Your child's age
Your expected education timeline
Your household budget
Your longer-term savings goals
If you haven't opened an RESP yet, September can also be a good time to start asking questions.
And if you already have one, a review can help you understand how the plan is progressing.
Education Savings Is Only One Part of the Bigger Picture
At Brightview Financial Services, education savings is part of a broader conversation about financial planning.
Brightview offers RESP services alongside other investment and banking options, including RRSPs, TFSAs, RDSPs, GICs, non-registered investments and annuities. (brightviewfinancial.ca)
The right approach depends on your circumstances, your goals and the purpose of the money you're saving.
That's why the first question shouldn't always be:
"What should I invest in?"
A better starting point is:
"What are we trying to accomplish?"
Once you know the goal, you can start exploring the tools that may help you get there.
Have Questions About RESPs?
You don't need to be an investment expert to start an education savings conversation.
If you're a parent, grandparent or family member wondering how RESPs work, what government incentives may be available or how education savings fits into your broader financial plan, Brightview Financial Services can help you understand your options.
Brightview Financial Services
4916 50th Ave
Beaumont, Alberta
780-929-8734
Learn more about Brightview Financial Services
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For the most current Government of Canada information about RESPs and education savings:
Canada Education Savings Grant
Registered Education Savings Plans and related benefits
This article is intended for general educational purposes and is not financial, investment or tax advice. Government program eligibility, contribution requirements and benefit amounts can change. Consult the current Government of Canada information and a qualified professional for advice specific to your circumstances.
