Registered Education Savings Plan (RESP)

Government Grants — Free Money

The Canada Education Savings Grant (CESG) adds 20% on the first $2,500 contributed annually — that's up to $500 per year, per child, in free government money. Over 18 years, this can total $7,200 in grants alone.

Key Facts

• Lifetime contribution limit: $50,000 per child
• CESG: 20% on first $2,500/year (max $500/year, $7,200 lifetime)
• Canada Learning Bond for lower-income families — up to $2,000
• Money grows tax-sheltered until withdrawal
• Students typically withdraw in low-income years — minimal tax
• Can be used for any post-secondary education in Canada or abroad

What If My Child Doesn't Go to School?

You can transfer RESP savings to your own RRSP (if you have room), transfer to a sibling, or withdraw contributions tax-free. Government grants must be returned.