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Registered Education Savings Plan (RESP)
Free money for school.
The Limit
2026 Limit$50k Lifetime
Always check your CRA My Account for your exact personal limit. Over-contributing attracts penalties!
The Tax Vibe
Post-tax in. Growth and grants taxed in student's hands (usually low/zero tax).
Best Used For...
- Parents saving for children's education
- Getting the 20% CESG grant ($500/yr free)
Description
The government matches 20% of your first $2,500 contributed annually per child. That's an instant guaranteed 20% return. If you have kids, this is a no-brainer.
The Free Money (CESG)
The Canada Education Savings Grant (CESG) matches 20% on the first $2,500/year. Lifetime max grant is $7,200.
Family Plans
You can open a family RESP for multiple siblings. If one child doesn't go to school, the other can usually use the money.