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Steven Alexander CPA Inc.accounting. advisory. growth.
Resources·RESP
Registered Education Savings Plan · Canada

The RESP, in plain language.

The RESP is how Canadian parents save for their children's post-secondary education — and it comes with up to $7,200 in government grants per child. The grant is a 20% match on what you contribute. The trick is timing your contributions to capture the full grant before the child turns 17.

Lifetime contribution cap
$50,000

Per beneficiary, across all RESPs combined.

Lifetime CESG max
$7,200

20% match on the first $36,000 of contributions per child.

Grant cutoff age
17

CESG is paid until the end of the year the child turns 17 — and even then, only with conditions.

The mechanics

How the RESP & CESG actually work.

Three things to know up front: the 20% match, the catch-up rule, and the withdrawal split. Get those right and the rest takes care of itself.

Rule

20% on the first $2,500/year

The Canada Education Savings Grant matches 20% of what you contribute, up to $2,500 per year. So $2,500 in = $500 grant. That's the basic match available to every Canadian family.

Rule

The catch-up rule

If you missed prior years' grant, you can claim one extra year's worth per current year — by contributing up to $5,000 in a year. That captures $1,000 of CESG (current year + one catch-up).

Rule

Withdrawals split two ways

When the child goes to school, your contributions come back to you tax-free. The grants and growth (called the EAP — Educational Assistance Payment) are taxed in the student's hands, usually at a low rate.

Rule

A-CESG (Additional CESG)

Lower-income families get an extra 10% or 20% match on the first $500 of contributions. So instead of 20%, you get 30% or 40% on that first slice. Adds up to $100–$200 extra per year.

Gotcha

The age-15 deadline

To receive CESG in the year the child turns 16 or 17, contributions of at least $2,000 must have been made before the year they turned 16, or $100/year for at least four prior years. Don't start at 15 — you'll miss the last two years of grant.

Gotcha

If the child doesn't go to school

Your contributions come back to you. Grants get returned to the government. Growth (AIP) can be rolled to your RRSP if you have room — or pulled out and taxed at your rate plus a 20% penalty.

Try it · The grant maximizer

How much grant can you still capture?

Tell the simulator your child's age. It calculates the years of CESG remaining, suggests an annual contribution to maximize the grant before the cutoff, and projects the RESP value at age 18 with 6% growth.

Child's current age2 years
CESG ends after the year the child turns 17.
CESG already received (if any)$0
If you've contributed before, what CESG has already been deposited?
Annual contribution$2,500
$2,500/yr = max basic CESG. $5,000/yr = current + 1 catch-up year.
Recommendation

Contribute $2,500/year for the next 15 years to capture the full $7,200 lifetime CESG.

What you'll capture

Years of CESG remaining15
CESG this year (at this contribution)$500
Total CESG you'd capture$7,200

CESG Progress (lifetime max $7,200)

$7,200 / $7,200 (100%)

Projected at age 18 (6% growth)

Total contributions$37,500
Total CESG$7,200
Estimated growth$25,800
RESP at age 18$70,500
When & how

Best practices.

Open it as soon as the SIN arrives

You need the child's Social Insurance Number to open an RESP. Start the moment you have it — the earliest dollars compound the longest.

Aim for $2,500/year

If you can swing $2,500/year, you'll capture the full $500 CESG every year. Anything less leaves grant on the table; anything more (up to $5K) only helps if you have unused room from prior years.

Family RESPs for multiple children

If you have more than one child, a Family RESP lets you share contributions and growth across all of them. Useful if one child doesn't end up going to school — the other can use the EAP.

Keep exploring

Other registered accounts.

If you've got the RESP set up, here's where to focus next.

01 / TFSA

Tax-Free Savings Account

Tax-free growth and withdrawals. The everyday account every Canadian over 18 should be using.

Read the guide → 02 / RRSP

Registered Retirement Savings Plan

Tax-deferred growth and an immediate refund.

Read the guide → 03 / FHSA

First Home Savings Account

Tax-deductible contributions and tax-free withdrawals for a qualifying first home.

Read the guide → 04 / RDSP

Registered Disability Savings Plan

Government grants and bonds matched up to 300% for Canadians with the Disability Tax Credit.

Read the guide →
Ready when you are

Thinking about education savings?

A 30-minute conversation, no obligation. We'll walk through how to set up an RESP and time the contributions to maximize your grant.

Book a 30-min chat →

Reviewed by Steven Alexander, CPA · Updated