Search
www.google.com
How an RESP Works; it's as Simple as...
How an RESP Works; it's as Simple as...
Open the plan
Book an appointment with us, bring your SIN and your child’s SIN, and we’ll set everything up.
Easy-peasy, lemon squeezy.
Start contributing
Set it and forget it with monthly, automatic contributions — even $25 a month adds up fast with grants. Or save occasionally with a tax refund, bonus, or gift. Either way, you’re building their future.
Watch it grow
The government adds up to 20% in grants (to a maximum of $7,200 per child), your savings grow tax-advantaged, and you choose how it’s invested — from guaranteed to growth-focused options. When it’s time, funds can cover tuition, housing, books, or even trade school tools.
Why RESPs are the Ultimate Parent Power Move
Why RESPs are the Ultimate Parent Power Move
Free Money
The Canada Education Savings Grant (CESG) adds 20% on your contributions — up to $500 a year and $7,200 total. Families with modest incomes may qualify for even more.
Free money? Yes, please!
Tax Advantages
RESP earnings grow tax-sheltered. When withdrawn, they’re usually taxed in your child’s hands — and most students pay little to no tax.
Flexibility
University, college, trade school — even programs abroad. RESP savings aren’t just for tuition, they can cover books, housing, transportation, or other education costs.
Options for Plan B
If your child doesn’t pursue post-secondary education, you still have options. You can keep the plan open, transfer it to another child, move funds into your RRSP, or withdraw your contributions*. (*See below for details)
Free Money (a.k.a. Government Grants)
For every dollar you save, the government adds 20 cents — up to $500 a year and $7,200 total.
Contribute $2,500 in one year, and you’ll unlock the full $500 grant.
Missed a year? No problem. Unused CESG room carries forward, so you can catch up later — up to $1,000 in grants in a single year.
Families with modest incomes can get an extra boost: an additional 10–20% match on the first $500 saved each year. That means you could receive up to $100 extra annually on top of the basic CESG.
Income thresholds are set by the government and updated each year. Ask us or visit RESP Grants on the Government of Canada website to see if you qualify.
For children from low-income families, the government deposits $500 to start plus $100 annually until age 15, for up to $2,000 total — even if you don’t contribute.
Invest in their future — your way
GICs
Safe and simple. Your money is guaranteed, making this a great option if you want stability and peace of mind.
Mutual Funds & ETFs
Professionally managed portfolios offered through Aviso Wealth that spread your money across different investments. A good choice if you want diversification and long-term growth without having to manage it all yourself.
Automated Portfolios
Prefer a digital, hands-off solution? Qtrade Guided Portfolios® create and manage a low-cost, professionally designed portfolio for you, with automatic rebalancing and ongoing support. Open and fund your RESP in minutes — all online.
Stocks & Bonds
Want full control? Take the driver’s seat with Qtrade Direct Investing® and manage it yourself.
Not sure which way to go? We’ll help you find the right mix.
Whether you prefer guaranteed security, balanced growth, or more control, our team can guide you toward the combination that fits your goals and comfort level.
How do withdrawals work?
This is the government grant money + any investment earnings in the plan.
-
EAPs are taxed in the student’s hands, but since most students have little to no income, the tax bill is usually very low (sometimes zero).
-
To qualify, your child must be enrolled in an eligible program — university, college, trade school, or another approved post-secondary program in Canada (and in many cases, abroad). Proof of enrolment is required.
This is the money you contributed. You can withdraw contributions at any time, tax-free, because they were made with after-tax dollars.
-
If your child is enrolled in eligible studies: Withdrawals count as PSE withdrawals, and there are no restrictions on how they can be used.
-
If your child is not enrolled: You can still take your contributions back, but any government grant money attached to those contributions must be returned to the government.
The nitty-gritty: everything you need to know about RESPs
-
Individual Plan → one child per plan. If that child doesn’t go to school, you can transfer the plan to another child — but government grants only transfer if the new beneficiary is a sibling under 21. Otherwise, the grants go back to the government (your contributions and earnings stay).
-
Family Plan → more than one child can be named as beneficiaries, but they must be related by blood or adoption (siblings, step-siblings, or cousins). Savings and grants can be shared — if one child doesn’t use all the funds, another can. This makes Family Plans more flexible if you have more than one child.
There’s no annual contribution limit, but there is a lifetime limit of $50,000 per child (beneficiary). You can contribute as little or as much as works for your budget — even $25 a month can add up significantly over time. Contributions are not tax-deductible, but the growth inside your RESP is tax-advantaged (earnings are sheltered until withdrawn).
Be careful not to exceed the $50,000 lifetime limit — excess contributions may incur a 1% monthly penalty.
Canada Education Savings Grant (CESG)
The government adds 20% to your contributions, up to $500 each year and $7,200 total per child.
If you don’t contribute in a given year, unused grant room can be carried forward. For example, if you miss a year, unused grant room carries forward. That means you can contribute $5,000 in one year and receive up to $1,000 in grants.
Heads-up for parents of teens: Grants are available until December 31 of the year your child turns 17. To qualify at ages 16–17, you’ll need to have contributed earlier — at least $100 in four prior years or $2,000 total before the year your child turns 15.
Additional CESG
For low- and middle-income families, the government may add an extra 10%–20% on the first $500 of contributions each year. For more information, you can visit the Employment and Social Development Canada website.
|
Based on Annual Income |
Basic CESG on a $2,500 Contribution |
Additional Grant |
Annual Maximum Grant |
|
Low Income Families |
20% up to $500 |
20% or $100 |
$600 |
|
Middle Income Families |
20% up to $500 |
10% or $50 |
$550 |
|
High Income Families |
20% up to $500 |
N/A |
$500 |
Canada Learning Bond (CLB)
For children in low-income families, the government deposits $500 in the first year and $100 annually until age 15, for up to $2,000 total — with no personal contributions required.
You can contribute for up to 31 years after opening the plan, and the RESP itself can remain open for up to 35 years. This flexibility gives your child plenty of time to decide on their education path.
RESP savings are very flexible. Funds can be used for a wide range of post-secondary education costs, including:
-
Tuition and compulsory fees
-
Books and course materials
-
Housing and living expenses
-
Tools, laptops, or supplies needed for their program
RESPs can be used at universities, colleges, trade schools, and other accredited programs in Canada — and in many cases, abroad.
