RESP Complete Guide: Save for Your Child's Education in Canada (2026)

Key Summary: The Registered Education Savings Plan (RESP) is Canada's most powerful tool for saving for a child's post-secondary education. The government matches 20% of your contributions through the CESG (up to $7,200 per child), and low-income families can receive up to $2,000 more through the Canada Learning Bond with zero contributions required. The lifetime contribution limit is $50,000 per beneficiary.

What is an RESP?

A Registered Education Savings Plan (RESP) is a tax-sheltered savings account registered with the Canadian government, designed specifically to help families save for a child's post-secondary education ^[1]. You contribute after-tax money, the government adds grants on top, and everything grows tax-free until the child is ready for school.

The real power of an RESP is the government matching. When you contribute $2,500, the government adds $500 through the Canada Education Savings Grant (CESG) - that is an instant 20% return before any investment growth ^[2]. No other savings vehicle in Canada offers a guaranteed return like this.

There are three types of RESPs:

Type	Description	Best For
Individual RESP	One beneficiary per plan. Anyone can open one for any beneficiary.	Single child, grandparents saving for one grandchild
Family RESP	Multiple beneficiaries allowed, but all must be related to the subscriber by blood or adoption.	Families with multiple children - grants and earnings can be shared among siblings
Group RESP	Pooled plan managed by a scholarship plan dealer. Strict contribution schedules.	Generally NOT recommended (see pitfalls section below)

Unlike a TFSA or RRSP, the RESP is specifically for education. But the trade-off is worth it: free government money that you simply cannot get anywhere else.

Who can open an RESP?

The subscriber (who opens the plan)

To open an RESP as a subscriber, you need:

• Be a Canadian resident
• Have a valid Social Insurance Number (SIN)
• No age limit for subscribers

Anyone can be a subscriber: parents, grandparents, aunts, uncles, family friends, or even organizations. Multiple people can contribute to different plans for the same child, but the $50,000 lifetime limit is shared across ALL plans for that beneficiary ^[1].

The beneficiary (who the plan is for)

The beneficiary (child) must:

• Be a Canadian resident
• Have a valid Social Insurance Number (SIN)
• No minimum age - you can open an RESP the day your child is born

For family RESPs, all beneficiaries must be connected to the subscriber by blood or adoption ^[1].

Eligibility by residency status

Status	RESP Eligible?	CESG Eligible?	CLB Eligible?
Canadian citizen child	Yes	Yes	Yes (if income qualifies)
Permanent resident child	Yes	Yes	Yes (if income qualifies)
Temporary resident child (study/work permit)	No	No	No

Important for newcomers: As soon as a child receives PR status and obtains a SIN, an RESP can be opened immediately. There is no waiting period after landing ^[1].

How much can you contribute?

The RESP has a $50,000 lifetime contribution limit per beneficiary across all plans for that child ^[1]. There is no annual contribution limit, but the CESG only matches the first $2,500 contributed per year.

Key rules:

• Lifetime limit: $50,000 per beneficiary (across ALL RESP plans for that child)
• Annual limit: None, but only first $2,500 per year earns CESG match
• Plan duration: Maximum 35 years from opening
• Contribution period: Up to 31 years after opening
• Over-contribution penalty: 1% per month on excess amount ^[8]

The minimum effective contribution to maximize free government money is $2,500 per year ($208.33 per month). This earns the full $500 annual CESG match ^[2].

If budget is tight, even small contributions help. Contributing $1,250 per year ($104.17 per month) earns $250 in CESG - still free money.

What government grants are available?

This is where the RESP truly shines. The Canadian government (and some provinces) will literally give you free money for your child's education.

CESG (Canada Education Savings Grant)

The CESG is the primary incentive for RESP contributions ^[2].

Basic CESG:

• Match rate: 20% on the first $2,500 contributed per year
• Maximum annual CESG: $500 per beneficiary per year
• Lifetime CESG maximum: $7,200 per beneficiary
• Eligible age: Birth to December 31 of the year the beneficiary turns 17

Additional CESG (for lower-income families):

Family Net Income (2025 thresholds)	Additional CESG Rate	On First...	Extra Amount
$55,867 or less	Extra 20%	$500	Up to $100
$55,867 to $111,733	Extra 10%	$500	Up to $50
Above $111,733	0%	N/A	$0

With the Additional CESG, a low-income family contributing $2,500 can receive up to $600 per year ($500 basic + $100 additional) ^[2].

CESG carry-forward rules:

• If you do not contribute enough in a year to earn the full $500 CESG, the unused room carries forward
• Maximum catch-up in any single year: $1,000 CESG (requires $5,000 contribution)
• Strategy: If you start late, contribute $5,000 per year to get $1,000 CESG per year until caught up ^[2]

CESG age 16-17 special rules: To qualify for CESG in the years the beneficiary turns 16 or 17, one of these must be met ^[2]:

• At least $2,000 in total contributions were made before the end of the year the child turned 15, OR
• At least $100 in annual contributions were made in any 4 years before the end of the year the child turned 15

CLB (Canada Learning Bond)

The CLB is designed specifically for low-income families. No contributions required ^[3].

• Initial payment: $500 (plus $25 to cover the cost of opening the RESP)
• Annual payments: $100 per year for each year the family qualifies
• Maximum per child: $2,000
• Eligibility period: Birth to age 15
• Born after: December 31, 2003

Eligibility is based on the family receiving the Canada Child Benefit (CCB) and meeting income thresholds. The threshold for a family with 1-3 children is approximately $55,867 (2025) ^[3].

Retroactive claims: If a family qualifies but has not opened an RESP, they can open one later and receive retroactive CLB payments for all qualifying years. The child has until age 21 to have an RESP opened and claim retroactive CLB ^[3].

Billions of dollars in CLB go unclaimed every year. If your family income is low, open an RESP even if you cannot contribute anything - the government will deposit money for free.

Provincial grants

BC Training and Education Savings Grant (BCTESG)

• Amount: One-time $1,200 grant ^[5]
• Eligibility: Child must be a BC resident, born on or after January 1, 2007
• Application window: Child must be between 6 and 9 years old when applied for
• No contribution required - just need an open RESP at a participating institution
• Both child and custodial parent/guardian must be BC residents

Critical deadline: You must apply before the child turns 9. Miss this window and the $1,200 is gone forever ^[5].

For BC newcomers: If you move to BC with a child aged 6-9, you can apply as long as you become a BC resident before the child turns 9.

Quebec Education Savings Incentive (QESI)

• Basic QESI: 10% refundable tax credit on first $2,500 in annual RESP contributions (max $250 per year) ^[6]
• Increased QESI: Additional 5% or 10% on first $500 for lower-income families
• Lifetime maximum: $3,600 per beneficiary
• Carry-forward: Yes, unused QESI room can carry forward

Other provinces

• Saskatchewan (SAGES): Permanently discontinued - no payments after 2017
• Alberta (ACES): Discontinued in 2015

Maximum free money per child

Source	Maximum Amount	Requires Contribution?
Basic CESG	$7,200	Yes ($2,500/year)
Additional CESG	Up to $5,600 extra	Yes (income-dependent)
CLB	$2,000	No
BCTESG (BC only)	$1,200	No
QESI (QC only)	$3,600	Yes
Total (BC, low-income)	Up to $16,000+
Total (typical BC family)	$8,400

What is the best contribution strategy?

Strategy 1: Maximize CESG ($2,500 per year from birth)

The most common recommendation. Contribute $2,500 per year from birth to age 17 ^[2].

• Annual CESG earned: $500
• Total CESG over ~14.4 years: $7,200 (lifetime max)
• Total contributions over 18 years: $45,000

Sample calculation (6% annual return):

• Contributions: $45,000
• CESG: $7,200
• Investment growth: ~$30,000-$40,000
• Total at age 18: approximately $80,000-$90,000

Strategy 2: Front-loading for more growth

Contribute more than $2,500 in early years. Only the first $2,500 earns CESG, but extra money has more time to compound.

Example: Contribute $16,500 in year 1 + $2,500 per year after. The extra $14,000 has 18 years to grow tax-free.

Strategy 3: Catch-up for late starters

If you start when the child is already 5, you have missed 5 years of CESG room.

• Accumulated unused CESG room: 5 x $500 = $2,500
• Maximum annual CESG catch-up: $1,000 (requires $5,000 contribution) ^[2]
• Strategy: Contribute $5,000 per year until caught up, then reduce to $2,500 per year

Monthly contribution equivalents

Monthly Amount	Annual Total	CESG Earned	Notes
$208.33	$2,500	$500	Maximizes annual CESG
$416.67	$5,000	$1,000	Maximizes CESG with catch-up
$104.17	$1,250	$250	Half the maximum - still worthwhile

What can you invest inside an RESP?

An RESP is not just a savings account. You can hold many types of investments inside it ^[7]:

Investment	Risk Level	Best For	Typical Returns
High-Interest Savings Account (HISA)	Very Low	Short-term, near withdrawal	3-5%
GICs	Low	Capital preservation, 3-5 years out	3-5%
Bond ETFs	Low-Medium	Moderate growth, stability	3-6%
Balanced ETFs	Medium	Mid-term growth	5-8%
Equity ETFs / Index Funds	High	Long-term growth (10+ years)	7-10%

Age-based investment strategy (glide path)

Child's Age	Suggested Allocation	Rationale
0-5	80-100% equities	Maximum time horizon, tolerate volatility
6-10	60-80% equities, 20-40% bonds	Still long-term, begin reducing risk
11-14	40-60% equities, 40-60% bonds	Transitioning toward stability
15-17	20-40% equities, 60-80% bonds/GICs	Protecting accumulated gains
17-18	0-20% equities, 80-100% HISA/GICs	Capital preservation before withdrawal

Self-directed vs. managed RESP

Self-directed (DIY): Questrade, Wealthsimple, RBC Direct Investing

• Lowest fees (ETF MERs 0.05-0.25%), full control
• Best for financially literate investors

Robo-advisor managed: Wealthsimple Invest, Questwealth, CI Direct Investing

• Automatic rebalancing, age-based glide paths
• Fees: 0.4-0.7% management + underlying ETF fees
• Best for hands-off investors

Disclosure: The Wealthsimple links above are referral links. If you sign up and meet Wealthsimple's referral conditions, both parties receive a $25 CAD cash bonus. We only recommend services we believe are genuinely useful.

Bank-managed (mutual funds): RBC, TD, BMO, CIBC, Scotiabank

• Higher fees (MER 1.5-2.5%), but convenient with in-person advice
• Target-date education funds available (e.g., RBC Target Education Funds)

US dividend withholding tax in RESP

Like a TFSA, the RESP is not protected under the Canada-US Tax Treaty. US-source dividends are subject to a 15% withholding tax that is permanently non-recoverable ^[8].

For RESP investments, consider:

• Canadian equity ETFs (XIC, VCN) - no foreign withholding
• Swap-based ETFs (HXS) - avoid withholding through swap structure
• All-in-one ETFs (XEQT, VGRO) - embedded withholding tax (WHT) drag is small (~0.10-0.15%) and simplicity may outweigh optimization

Note: The ETF ticker symbols above (XIC, VCN, HXS, XEQT, VGRO) are examples for illustration only and are not investment recommendations. Always do your own research or consult a qualified financial advisor before making investment decisions.

For RESPs under $50,000, the dollar impact is modest. For larger family RESPs, consider a Canadian-heavy allocation.

Why you should NEVER choose a group RESP

Group RESP plans (Heritage Education Funds, Knowledge First Financial, CST) have serious problems ^[7]:

1. High upfront fees: Sales/enrollment fees of $1,000+ deducted immediately
2. Strict contribution schedules: Miss a payment and face penalties
3. Penalties for leaving early: You lose enrollment fees AND investment earnings
4. Loss of earnings if child does not attend school: Your child's share goes to the pool
5. No investment control: You cannot choose your investments
6. Aggressive sales tactics: Salespeople target new parents in hospitals and malls

Always choose an individual or family RESP at a bank, credit union, or online brokerage.

How do withdrawals work?

Types of withdrawals

EAP (Educational Assistance Payments)

• Contains: Government grants (CESG, CLB, provincial) + investment earnings ^[1]
• Taxable: Yes, but taxed as income in the student's hands
• Tax impact: Usually minimal because students have low income and tuition credits
• Requires: Proof of enrollment in a qualifying program
• No restrictions on how money is spent: EAP funds can be used for tuition, rent, textbooks, living expenses, transportation, or any other purpose - there is no requirement to provide receipts for specific education expenses
• Limit first 13 weeks (full-time): $8,000
• After 13 weeks: No limit on EAP withdrawals
• Part-time students: $4,000 per 13-week period

PSE (Post-Secondary Education Payments)

• Contains: Your original contributions only ^[1]
• Taxable: No (it was after-tax money going in)
• No limit: Can withdraw any amount once enrolled
• No proof of enrollment required for contribution withdrawals

Qualifying educational programs

Full-time: At least 3 consecutive weeks, at least 10 hours per week of courses ^[4]

Part-time: At least 3 consecutive weeks, at least 12 hours per month of courses ^[4]

Eligible institutions include:

• Canadian universities, colleges, CEGEPs
• Trade schools, vocational programs, apprenticeships
• International universities (programs at least 13 consecutive weeks, full-time) ^[4]

Withdrawal strategy for tax efficiency

1. Year 1 of school: Withdraw up to $8,000 EAP - usually tax-free due to the student's basic personal amount (~$16,000) ^[1]
2. Supplement with PSE: If more money is needed, withdraw contributions tax-free
3. Subsequent years: No EAP limit; withdraw what is needed
4. Maximize EAP in low-income years: With tuition credits + basic personal amount, many students pay $0 tax on EAPs of $15,000-$20,000+ per year

Situation	Maximum EAP
First 13 weeks, full-time	$8,000
After 13 weeks, full-time	No limit
Per 13-week period, part-time	$4,000

What if the child does not go to school?

Do not panic. You have several options ^[1]:

Option 1: Transfer to another child (best option)

• Family RESP: Simply redirect payments to another eligible sibling
• Individual RESP: Can change the beneficiary
• CESG: New beneficiary must be under 21 and not have exceeded their own CESG lifetime limit
• No tax consequence if transferred to a sibling under 21

Option 2: Transfer earnings to the subscriber's RRSP

• The subscriber (contributor/parent) - not the beneficiary (child) - can transfer up to $50,000 of investment earnings to their own RRSP ^[1]
• Conditions: You must have RRSP room, the RESP must have been open at least 10 years, and each beneficiary must be at least 21 and not pursuing education
• Government grants (CESG, CLB) must be returned to the government - only the original grant amounts are returned, not any investment earnings generated by those grants
• Investment earnings from grants remain in the RESP and are included in the RRSP transfer or AIP
• If the account balance is less than the grant amount due to investment losses: You only return what remains - you are not required to make up the shortfall
• No tax on the RRSP transfer

Option 3: Accumulated Income Payment (AIP) - last resort

• Withdraw investment earnings directly to yourself
• Tax: Included in your income PLUS an additional 20% tax (12% in Quebec) ^[8]
• Government grants must be returned
• Heavy tax penalty - avoid if possible

Option 4: Keep the plan open

• Plans can stay open for 35 years ^[1]
• The beneficiary might go to school later as a mature student
• No requirement to withdraw immediately

Decision flow

Child does not attend school
  -> Do you have other eligible children?
     Yes -> Transfer beneficiary (Option 1)
     No -> Do you have RRSP room? Plan open 10+ years? Beneficiary 21+?
           Yes -> Transfer to RRSP up to $50,000 (Option 2)
           No -> AIP or close (Option 3/4)

RESP for newcomers and immigrants

Opening an RESP after landing

1. Get PR status - child receives Confirmation of Permanent Residence
2. Apply for SIN at Service Canada (can be done same day as landing)
3. Open RESP at any financial institution (same day as getting SIN)
4. No waiting period - eligible immediately upon becoming a permanent resident ^[1]

CESG room for newcomers

CESG room accumulates from the year the child becomes a Canadian resident, not from birth ^[2]. If a child arrives as a PR at age 5 in 2025, CESG room starts accumulating from 2025 only. There is no retroactive room for years before residency began.

Catch-up strategy: Contribute $5,000 per year to earn $1,000 in CESG annually until caught up.

CLB for newcomer families

• Eligible if family income qualifies, regardless of how recently you arrived ^[3]
• Can claim retroactive CLB for qualifying years since the child became a Canadian resident
• Many newcomer families with low initial income in Canada qualify

Strategies by child's age at arrival

Child's Age at Arrival	Strategy
0-5	Open RESP immediately; contribute $2,500/year; plenty of time
6-9 (in BC)	Open RESP + apply for BCTESG immediately; contribute $5,000/year for catch-up
10-12	Contribute $5,000/year for CESG catch-up; growth-oriented investments
13-15	Contribute $5,000/year; moderate investments; still time for 3-5 years of CESG
16-17	Limited time; check 16-17 CESG rules; may be better to save in TFSA

Key tips for newcomer families

1. Get children's SINs on day one (PR landing)
2. Open RESP immediately (even with $0 contribution for CLB eligibility)
3. If in BC with children aged 6-9, apply for BCTESG at an eligible institution ^[5]
4. Apply for Canada Child Benefit (CCB) - this triggers CLB eligibility assessment
5. Contribute at least $2,500 per year as soon as possible for CESG matching
6. Consider a family RESP if you have multiple children

RESP vs. other education savings options

RESP vs. TFSA for education savings

Factor	RESP	TFSA
Government grants	Yes ($7,200+ free money)	No
Tax-sheltered growth	Yes	Yes
Withdrawal restrictions	Education only (or penalties)	Any purpose, any time
Contribution limit	$50,000 lifetime per child	$7,000/year, accumulates
Winner for education	RESP	TFSA is backup/supplement

Hybrid strategy: Max RESP first (for free government money), then overflow into TFSA.

RESP vs. RRSP for education savings

Factor	RESP	RRSP
Government grants	Yes (20% CESG)	No
Tax deduction on contributions	No	Yes
Withdrawal tax	EAP taxed to student	Taxed to account holder
Flexibility	Education only	Retirement + HBP
Winner for education	RESP	RRSP is for retirement

RESP vs. non-registered account

Factor	RESP	Non-Registered
Government grants	Yes (20% match + CLB)	No
Tax-sheltered growth	Yes	No (taxed annually)
Contribution limit	$50,000 lifetime	Unlimited
Flexibility of use	Education only	Any purpose
Winner for education	RESP	Only if $50K already maxed

The math is clear: a $2,500 RESP contribution immediately becomes $3,000 with the 20% CESG match. No other savings vehicle offers a guaranteed 20% instant return ^[2].

Common mistakes and how to avoid them

Mistake 1: Not contributing at least $2,500 per year

Every year you do not contribute $2,500, you leave $500 in free CESG money on the table ^[2]. Over 18 years, that is $7,200 in grants lost - and with investment growth compounded over time, the total loss can exceed $15,000.

Even if you cannot afford $2,500, contribute what you can. Every dollar gets a 20% match up to that $2,500 threshold.

Mistake 2: Over-contributing past the $50,000 lifetime limit

CRA charges a penalty of 1% per month on the excess amount ^[8]. This happens more often than you think when multiple family members contribute to separate RESPs for the same child.

Calculation example:

Your child has $50,000 total across all RESPs. Grandma contributes $5,000 more to her own RESP for the same child.

Month	Excess Amount	Penalty (1%)
January	$5,000	$50
February	$5,000	$50
March	$5,000	$50
Grandma withdraws $5,000 in April	$0	$0
Total penalty		$150

How to avoid: Track total contributions across ALL plans for each child. Communicate with grandparents and family members who contribute.

Mistake 3: Falling for group RESP sales pitches

Group RESP salespeople aggressively target new parents in hospitals, malls, and through door-to-door visits. They make it sound like the only way to save for education ^[7].

The reality: group RESPs have high fees, strict schedules, penalties for leaving, and you lose earnings if your child does not attend school. Individual or family RESPs at banks or online brokerages are almost always better.

What to do if you already have a group RESP: Consider whether the cost of leaving (lost enrollment fees + earnings) is worth the flexibility of switching to a self-directed plan. In many cases, especially early on, it is worth the loss to escape the restrictions.

Mistake 4: Not opening early enough

CESG room starts accumulating from birth ^[2]. Each year delayed means $500 in missed grant room. Even if you cannot afford contributions right now, open an RESP with $0 to qualify for CLB if your income is low.

Mistake 5: Not knowing about the Canada Learning Bond

Billions of dollars in CLB go unclaimed every year ^[3]. If your family income is below approximately $55,867 (for 1-3 children), you can receive up to $2,000 per child with zero contributions. Just open an RESP.

Mistake 6: Missing the BCTESG deadline (BC residents)

The $1,200 BCTESG must be applied for when the child is between 6 and 9 ^[5]. Miss this window and the money is gone forever. Put a reminder in your calendar for your child's 6th birthday.

Mistake 7: Not adjusting investment risk as university approaches

Keeping 100% equities when your child is 16 is dangerous. A market crash could destroy years of savings right before tuition is due. Use the age-based glide path: aggressive when young, conservative when school is near.

Mistake 8: Ignoring the age 16-17 CESG rules

To receive CESG at ages 16-17, you must have met prior contribution requirements ^[2]. If you have not made at least $2,000 in total contributions before the child turns 15, or $100 per year in any 4 years before age 15, you lose two years of CESG ($1,000).

Mistake 9: Not coordinating with multiple contributors

When grandparents, aunts, and uncles all contribute to separate RESPs for the same child, the lifetime limit can be exceeded accidentally ^[1]. Designate one "primary" RESP and communicate contribution totals regularly.

Mistake 10: Withdrawing incorrectly

Withdrawing too much EAP when the student has other income means unnecessary tax. Withdrawing too little EAP when the student has no income means missing the chance to pull out money tax-free ^[1].

Strategy: In low-income student years, maximize EAP withdrawals. Use PSE (contribution refunds) when the student has other income.

How to open an RESP

You can open an RESP at:

• Major banks: TD, RBC, BMO, Scotiabank, CIBC - walk into any branch with SIN and ID
• Online brokerages: Wealthsimple, Questrade - open online, lower fees, more investment options
• Credit unions: Vancity, Coast Capital, Desjardins
• Robo-advisors: Wealthsimple Invest, Questwealth - automated portfolio management

Disclosure: The Wealthsimple links above are referral links. If you sign up and meet Wealthsimple's referral conditions, both parties receive a $25 CAD cash bonus. We only recommend services we believe are genuinely useful.

What you need:

Data Currency: Figures, rates, and thresholds in this guide are based on the most recent verified data (2025-2026). Policy details are reviewed regularly, but always confirm current amounts at the linked official sources before making decisions.

• Social Insurance Number (SIN) for both subscriber and beneficiary
• Government-issued photo ID
• Canadian address
• Birth certificate or proof of relationship (for family RESPs)

Most online brokerages let you open an RESP in under 15 minutes.

Key Takeaways

• RESP is the best way to save for a child's education in Canada - the 20% CESG match is free money you cannot get anywhere else
• Lifetime limit is $50,000 per beneficiary; contribute $2,500 per year to maximize the $500 annual CESG
• Low-income families: open an RESP even with $0 contributions to receive up to $2,000 in CLB
• BC residents: apply for the $1,200 BCTESG between ages 6-9 - do not miss this deadline
• Newcomers: open an RESP on the same day you get your child's SIN after landing
• NEVER choose a group RESP - individual or family plans are always better
• Use an age-based investment strategy: aggressive when young, conservative near university
• If the child does not attend school, transfer to a sibling or roll earnings into your RRSP
• Planning to buy your first home? The FHSA is a separate tax-advantaged account worth combining with your RESP savings strategy

FAQ

What is the RESP lifetime contribution limit? The lifetime limit is $50,000 per beneficiary across all RESP plans. There is no annual limit, but the CESG only matches the first $2,500 per year ^[1].

How much free government money can I get through RESP? Through the basic CESG alone, up to $7,200 per child. Low-income families can receive an additional $2,000 through the CLB with zero contributions. BC residents get an extra $1,200 through BCTESG ^[2][3][5].

Can newcomers open an RESP? Yes. As soon as a child receives permanent resident status and a SIN, an RESP can be opened immediately. There is no waiting period after landing ^[1].

What happens if my child does not go to university? You have several options: transfer the plan to another child, transfer earnings to your RRSP (up to $50,000), take an Accumulated Income Payment (taxed plus 20% penalty), or keep the plan open for up to 35 years ^[1].

What is the CESG carry-forward rule? If you do not contribute enough in a year to earn the full $500 CESG, the unused room carries forward. You can catch up by contributing $5,000 per year to earn $1,000 in CESG annually ^[2].

Should I choose an individual or family RESP? A family RESP is generally better if you have multiple children, as grants and earnings can be shared among siblings. An individual RESP works well for single-child families or when non-family members want to contribute ^[1].

What is the difference between EAP and PSE withdrawals? EAP (Educational Assistance Payments) contain grants plus investment earnings and are taxed in the student's hands. PSE (Post-Secondary Education payments) are your original contributions returned tax-free ^[1].

Can RESP be used for international universities? Yes. Universities outside Canada that offer post-secondary level courses qualify, as long as the program is at least 13 consecutive weeks and the student is enrolled full-time ^[4].

What is the BCTESG and how do I claim it? The BC Training and Education Savings Grant is a one-time $1,200 grant for BC resident children. You must apply when the child is between ages 6 and 9 at a participating institution. No contribution is required ^[5].

Is it too late to open an RESP if my child is already 10? No. You can still contribute and earn CESG until the end of the year the child turns 17. Contributing $5,000 per year lets you catch up on missed CESG room at $1,000 per year ^[2].

What is the over-contribution penalty for RESP? CRA charges a penalty of 1% per month on any amount exceeding the $50,000 lifetime limit per beneficiary ^[8].

Can grandparents contribute to an RESP? Yes. Anyone can open and contribute to an individual RESP for any beneficiary. For a family RESP, all beneficiaries must be related to the subscriber by blood or adoption ^[1].

Why should I avoid group RESPs? Group RESPs have high upfront fees, strict contribution schedules, penalties for leaving early, and you lose investment earnings if your child does not attend school. Individual or family plans at banks or online brokerages are almost always better ^[7].

How does RESP compare to TFSA for education savings? RESP is almost always better for education savings because of the 20% government grant (CESG). A TFSA has no government match. Use RESP first, then overflow into TFSA if you have maxed out the $50,000 lifetime limit.

What investments should I hold inside an RESP? Use an age-based strategy: mostly equities when the child is young (0-10), gradually shifting to bonds and GICs as university approaches (15-17) to protect accumulated gains ^[7].