Question 1

How much does the government contribute to an RESP?

Accepted Answer

The federal government contributes through three programs: the Canada Education Savings Grant (CESG) matches 20% of annual contributions up to $500 per year ($7,200 lifetime), the Additional CESG adds 10-20% on the first $500 for lower-income families, and the Canada Learning Bond (CLB) provides up to $2,000 for eligible low-income families without requiring any personal contributions.

Question 2

What is the CESG and how does it work?

Accepted Answer

The Canada Education Savings Grant (CESG) is a 20% match on annual RESP contributions, up to a maximum of $500 per year per child ($2,500 contribution × 20% = $500). The lifetime CESG limit per child is $7,200. The grant is paid directly into the RESP. To maximize the CESG, contribute at least $2,500 per year per child.

Question 3

What is the Additional CESG?

Accepted Answer

The Additional CESG provides extra matching on the first $500 of annual contributions for lower-income families. If family net income is under $55,867 (2026), you receive an extra 20% (total 40% on first $500 = $200). If income is between $55,867 and $111,733, you receive an extra 10% (total 30% on first $500 = $150). The Additional CESG is included in the $7,200 lifetime limit.

Question 4

What is the Canada Learning Bond?

Accepted Answer

The Canada Learning Bond (CLB) is a government grant for children in low-income families. It provides $500 in the first year and $100 per year for up to 15 years (maximum $2,000 per child). No personal contributions are required — you just need to open an RESP. Eligibility is based on receiving the Canada Child Benefit.

Question 5

Can I carry forward unused CESG room?

Accepted Answer

Yes. If you do not contribute enough to claim the full $500 CESG in a year, the unused room carries forward. You can claim up to $1,000 in CESG in a single year (double the annual limit) by contributing $5,000. This means if you miss early years, you can catch up later — but only at double the normal rate. You should start contributing before age 15 to avoid losing room permanently.

Question 6

How much should I contribute to an RESP each year?

Accepted Answer

At minimum, contribute $2,500 per year per child to get the full $500 CESG. The lifetime contribution limit is $50,000 per beneficiary. If you can only afford a smaller amount, contribute at least $500 to get the Additional CESG (if eligible). Any contribution triggers the 20% match up to the annual limit.

Question 7

What happens if my child does not go to post-secondary?

Accepted Answer

If your child does not attend post-secondary education: (1) Government grants (CESG, CLB) must be returned to the government. (2) Your contributions are returned to you tax-free. (3) Investment growth (Accumulated Income Payments) can be rolled into your RRSP (up to RRSP room available) and taxed as income plus a 20% penalty if not rolled to RRSP. (4) You can transfer the RESP to another beneficiary (sibling) without losing grants.

Question 8

When should I start an RESP?

Accepted Answer

As soon as possible after birth. Starting at birth means 18 years of CESG eligibility and compound growth. Starting at age 10 means only 7-8 years of grants. With $2,500 annual contributions at 6% return, starting at birth produces roughly $93,000 by age 18 — while starting at age 10 produces only $38,000. Early years matter enormously due to compounding.

Feature	Details
Match rate	20% of annual contributions
Annual maximum	$500 ($2,500 in contributions)
Carry-forward maximum	$1,000 in one year ($5,000 contributed)
Lifetime maximum	$7,200 per beneficiary
Eligibility	Canadian resident beneficiary under 18

Family Net Income (2026)	Extra Rate on First $500	Total Rate on First $500
Under $55,867	+20%	40% ($200 on $500)
$55,867 – $111,733	+10%	30% ($150 on $500)
Over $111,733	0%	20% ($100 on $500)

Feature	Details
First year	$500 (including $25 to open the RESP)
Each subsequent year	$100/year
Lifetime maximum	$2,000 per child
Contributions required	None
Eligibility	Child qualifies for Canada Child Benefit (low-income)

Start Age	Annual Contribution	Total Contributions	Total CESG	RESP at 18 (6%)
Birth	$2,500	$45,000	$7,200	~$93,000
Age 5	$2,500 ($5,000 first 2 years)	$37,500	$7,200	~$67,000
Age 10	$5,000	$40,000	$7,200	~$55,000
Age 14	$5,000	$20,000	$4,000	~$24,000

Return Rate	RESP at Age 18	Total Grants	Total Growth
4%	$75,000	$7,200	$22,800
6%	$93,000	$7,200	$40,800
7%	$102,000	$7,200	$49,800
8%	$113,000	$7,200	$60,800

RESP Grant Calculator

How this calculator works

RESP government grants at a glance

Canada Education Savings Grant (CESG)

Additional CESG (income-tested)

Canada Learning Bond (CLB)

Contribution strategies

The “$2,500 per year” minimum

The catch-up strategy

The “$208 per month” autopilot

RESP investment growth scenarios

Important rules to know

The 31-year rule

Changing beneficiaries

Post-secondary eligible expenses