RESP + CESG Calculator (Canada)

CESG is the federal government's 20% match on your RESP contributions. Contribute C$2,500/year per child and get C$500 in free CESG money. Lifetime maximum CESG per child is C$7,200. You can carry forward unused CESG room if you cannot contribute in some years. Additional CESG of 10% or 20% is available for lower-income families on the first C$500/year of contributions. CESG is the main reason RESPs are so valuable. It's effectively a guaranteed 20% return on the first C$2,500/year.

The sweet spot is C$2,500/year per child to maximise the basic 20% CESG match (gets you the full C$500 grant). That's about C$208/month. Contributing more does not get extra CESG (the lifetime cap is C$7,200 which takes 14-15 years of max contributions). You can contribute up to C$50,000 lifetime per beneficiary, but contributions over the CESG-eligible amount have no government match. For lower-income families, the first C$500 gets the Additional CESG match (extra 10-20%), so prioritise that first.

Several options. You can transfer the RESP to a sibling's RESP (transfer the CESG too). You can withdraw your own contributions tax-free (it's your money). The grants must be returned to the government. The investment earnings can be transferred to your RRSP (up to C$50,000) if you have contribution room, or withdrawn as Accumulated Income Payments (AIP) which face a 20% penalty plus your regular tax rate. RESPs stay open for 35 years from opening, so wait if your child takes a gap or starts later.

CLB is free money for kids in lower-income families. The federal government deposits C$500 in the first year and C$100 per year afterward (up to C$2,000 total) into the RESP. No matching contribution required. Eligibility is based on family income at or below the National Child Benefit threshold (around C$57,000 for a family of 4 in 2025). Even if you can't afford to contribute, open an RESP just to collect CLB. CLB is often missed. About 30% of eligible Canadian children don't have it.

Family RESP allows multiple beneficiaries (your children) who must be biologically related to you or adopted. Better if you have multiple kids. You can shift funds between children if one doesn't pursue post-secondary. Individual RESP is for one beneficiary who doesn't need to be related to you (good for grandparents/godparents opening for unrelated kids). Both allow C$50,000 lifetime contribution per beneficiary. Family is usually best for parents with multiple kids.

Bank/online broker RESPs (TD, RBC, Questrade, Wealthsimple) are generally the best choice. Low fees, flexible investment options, no contribution schedules. Scholarship plans (Heritage, Children's Education Funds) have higher fees, rigid contribution schedules, and the child must attend full-time post-secondary or you lose grants. Many financial professionals recommend avoiding scholarship plans. Bank RESPs are simpler and cheaper. Many ETF-based DIY portfolios cost under 0.20% per year vs 2%+ for scholarship plans.

Qualified post-secondary education at designated institutions worldwide. Includes universities, colleges, CEGEP (Quebec), trade schools, apprenticeships, and some online programs. The money pays for tuition, books, fees, residence/rent, food, transportation, equipment for studies (laptop for example), and other reasonable costs. The student does not have to live with you or be a full-time student (part-time is allowed). Programs as short as 3 weeks at qualifying institutions are eligible.