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Module 4 · 9 min read

Investing in your children's future

Free government money for their education

Why this matters for newcomers

Many parents come to Canada so their children can have more opportunities. The Registered Education Savings Plan (RESP) is one of the most generous programs Canada offers, and one of the most often missed by newcomer families. The government adds money on top of yours, and some families receive money without saving anything at all.

20%Grant added to what you save, up to $500 a year
$7,200Lifetime grant per child
$2,000Canada Learning Bond, with no saving needed

What an RESP is

An RESP is a savings and investment account for your child's education after high school: university, college, CEGEP, trade school, or an apprenticeship. The money grows without being taxed while it's in the account. Any adult can open one for a child, including parents, grandparents, or other relatives.

The free money the government adds

ProgramHow it worksHow much
Canada Education Savings GrantThe government adds 20% of what you put inUp to $500 a year per child (on $2,500 saved), up to $7,200 per child in total
Additional grant for lower and middle incomesAn extra 10% or 20% on the first $500 you put in each yearAn extra $50 or $100 a year, depending on family income
Canada Learning BondFor lower-income families. You don't need to put in any money.$500 the first year, then $100 a year up to age 15, up to $2,000 total

Example: small amounts still add up

Saving $25 a week (about $1,300 a year) earns $260 a year in free grant money for your child. Saving about $208 a month ($2,500 a year) earns the full $500 a year.

See what the grant adds

A quick estimate of the basic grant and bond. It doesn't include investment growth or the additional grant.

What you put in
Education savings grant
Canada Learning Bond
Total before growth
Your savingsGrantBond

Illustration only. The grant is capped at $500 a year in this estimate (catch-up years can add more) and $7,200 per child.

If your children are older

Newcomer tip

Arrived with older children? Start now. The grant stops at the end of the year your child turns 17. If you missed earlier years, you can often catch up by receiving up to $1,000 in grant in a single year (by contributing $5,000), as long as you have unused grant room.

Your child needs to be a resident of Canada and have their own SIN. Your own immigration status does not stop your child from receiving the grants.

Watch out

Some RESPs, often called group or scholarship plans, are sold with high fees and strict rules that can cause you to lose money if you stop contributing. Before signing, ask about every fee and what happens if you miss payments. An individual or family RESP at a bank, credit union, or online brokerage is usually simpler and more flexible.

When you open an RESP, ask the provider to apply for every grant and bond your child may qualify for, then check your statement to make sure they appear.

Your next small step

Track it on your first-year checklist →

Learn more

Official, free sources. Always check these for the latest amounts before making a decision.