Registered Education Savings Plan (RESP) delivers a tax-advantaged framework to fund post-secondary education in Canada, helping offset tuition and living-cost inflation while reducing reliance on student debt.

Contributions are not tax-deductible; investment growth compounds tax-deferred; withdrawals for schooling are paid as Educational Assistance Payments (EAP) and taxed in the student’s hands, while original contributions (Post-Secondary Education withdrawals) come out tax-free. The Canada Education Savings Grant (CESG) provides 20% on the first $2,500 contributed per year per beneficiary, up to $500 annually and $7,200 lifetime. Additional CESG may increase support for modest-income households. The Canada Learning Bond (CLB) can add up to $2,000 for eligible low-income beneficiaries, even with no contributor deposits.

Quebec Education Savings Incentive (QESI) at 10% (annual caps apply) and the one-time $1,200 B.C. Training and Education Savings Grant (BCTESG). Program availability and rules vary by province and may change.

Lifetime RESP contribution limit of $50,000 per beneficiary; no annual contribution limit, but CESG applies only to the first $2,500 contributed each year. Unused grant room allows $1,000 of CESG in a year via catch-up. Age 16–17 grant eligibility requires minimum prior-year contributions or cumulative deposits meeting federal criteria. Overcontributions trigger a 1% per-month penalty on the excess amount.

Higher first-13-weeks EAP limits—up to $8,000 for full-time and $4,000 for part-time studies—and expanded flexibility for separated or divorced parents to be joint subscribers (2023 measures).

Age-based glidepath to manage risk—growth-oriented equity index funds early, shifting toward short-duration bonds, GICs, and high-interest vehicles as enrollment nears. Elevated interest-rate conditions have improved guaranteed yields, strengthening low-risk options inside RESPs. Cost control through low-fee funds enhances compounding.

Coordinate EAP timing with tuition, books, and living expenses to maximize basic personal amounts and credits, smoothing taxable income in the student’s hands. Maintain documentation of eligible expenses and grant-driven components reported on tax slips.

Absence of qualifying education permits an Accumulated Income Payment (AIP). AIP may be transferred to an RRSP or spousal RRSP within available room (up to prescribed limits) or received as income with additional tax. Family plans allow beneficiary changes among eligible siblings. Plans generally must close by the 35th year after opening.

Term life and disability coverage can protect ongoing savings targets; critical illness benefits can preserve contribution capacity during health shocks; successor subscriber designations and estate planning maintain plan continuity.

• Start early; automate monthly deposits to capture CESG steadily
• Target $2,500 annually per beneficiary for full CESG; use catch-up years when needed
• Rebalance toward capital preservation as enrollment approaches
• Coordinate grants across provincial programs where available
• Name a successor subscriber and document beneficiary changes in family plans