September is a natural time to think about education planning. A Registered Education Savings Plan (RESP) can help families save for a child or grandchild’s post-secondary education while taking advantage of government incentives.
Here are a few key things to know in 2026:
1. Government grants can boost your savings
The federal Canada Education Savings Grant (CESG) adds 20% on the first $2,500 contributed annually, up to $500 per year and $7,200 over a beneficiary’s lifetime.
Eligible lower-income families may also qualify for the Canada Learning Bond, which can provide up to $2,000 without requiring personal contributions.
2. B.C. families may receive an additional $1,200
Eligible children in British Columbia may qualify for the B.C. Training and Education Savings Grant (BCTESG), a one-time $1,200 contribution to an RESP. Applications are generally made between the child’s 6th and 9th birthdays, and no matching contribution is required.
3. The lifetime contribution limit is $50,000
There is no annual RESP contribution limit, but total contributions are limited to $50,000 per beneficiary across all RESPs established for that person.
4. Contributions are not tax-deductible
RESP contributions do not reduce your taxable income. However, investments can grow tax-deferred inside the plan.
When funds are used for eligible education, original contributions can generally be withdrawn tax-free. Government grants and investment earnings are typically taxable to the student beneficiary.
5. RESPs offer flexibility
RESP funds can support eligible university, college, trade school and other qualifying post-secondary programs.
Plans can generally remain open for up to 35 years, giving beneficiaries flexibility if their education plans change.
6. Adults can be beneficiaries too
RESPs are most commonly used for children, but adults can also be beneficiaries or open an individual RESP for themselves.
For adults, however, an RESP should be compared with other savings options such as a TFSA or RRSP, since many government education grants are designed for younger beneficiaries.
Start Early, Review Regularly
For parents and grandparents, an RESP can be a valuable part of a broader financial plan. Starting early provides more time for contributions, government grants and investment growth to accumulate.
A financial advisor can help determine which grants are available, coordinate contributions among family members and build an investment strategy suited to the beneficiary’s education timeline.
Information is current as of September 2026 and is provided for general information only. RESP rules and eligibility requirements may change.