The Children Education Savings tool helps Canadian families plan and save effectively for their child's future post-secondary education. This essential resource guides parents and guardians through the complexities of Registered Education Savings Plans (RESPs), maximizing government grants like the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB). It's designed for anyone in Canada looking to build a robust education fund, ensuring their children have the financial support needed for college or university.
A Registered Education Savings Plan (RESP) is a government-registered savings plan designed to help families save for a child's post-secondary education. Contributions grow tax-free, and the Canadian government provides grants like the CESG and CLB to boost savings. Funds are withdrawn tax-free by the student for eligible educational expenses.
In 2026, the primary government grant is the Canada Education Savings Grant (CESG), which matches 20% of contributions up to a maximum of $500 per year, with a lifetime maximum of $7,200 per beneficiary. The Canada Learning Bond (CLB) also provides up to $2,000 for eligible low-income families without requiring contributions. Additional provincial grants may also be available.
There is no annual contribution limit for an RESP. However, there is a lifetime contribution limit of $50,000 per beneficiary. While there's no annual limit, the CESG has annual contribution thresholds to maximize the grant, typically $2,500 to receive the full $500 annual CESG.
If your child doesn't attend post-secondary education, you have several options. Contributions can be withdrawn tax-free, or the RESP can be transferred to another eligible beneficiary. The accumulated income can be transferred to your RRSP (if you have contribution room) or withdrawn as an Accumulated Income Payment (AIP), which is subject to tax plus an additional 20% penalty tax.