How to Get Free Money for Your Child's Education: The 2026 RESP Guide
Did you know the Canadian government gives you a 20% guaranteed return on your child's education savings? Learn how the RESP works and how to maximize the Canada Education Savings Grant (CESG).
The Most Powerful Account for Parents
University tuition in Canada is expensive, and it's only going up. The Registered Education Savings Plan (RESP) is a tax-advantaged investment account designed to help parents save for their children's post-secondary education. The biggest draw? The government pays you to save.
How the CESG Works (Free Money)
Through the Canada Education Savings Grant (CESG), the government matches 20% of your contributions. If you put in $1,000, they add $200. To maximize this, you should aim to contribute $2,500 per year, which yields the maximum annual grant of $500. This is an immediate, guaranteed 20% return on investment before your money even hits the stock market.
Catch-up Rule for Late Starters
If you missed previous years, you can carry forward unused CESG room. You can catch up by contributing $5,000 in a single year and receive $1,000 in grants for that year.
Frequently Asked Questions
How much does the government contribute to an RESP?
The government matches 20% of your contributions on the first $2,500 every year through the CESG. This means if you contribute $2,500, the government gives you $500 for free, up to a lifetime maximum of $7,200 per child.
What happens if my child doesn't go to university or college?
You don't lose your money. You can transfer the RESP to another sibling, transfer the growth into your RRSP (up to $50,000), or withdraw your original contributions tax-free. However, the government grants will be returned to the government.
Can grandparents open an RESP?
Yes! Anyone can open an RESP for a child—parents, grandparents, aunts, or uncles. The child just needs a valid SIN.
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