RESP Canada 2026: The Complete Guide to Saving for Your Child's Education

Question: Can grandparents contribute to an RESP?

Answer: Yes! Grandparents (or anyone) can contribute to a child's RESP, but there can only be one subscriber (owner) of the account unless it's a family plan with two parents. The best approach is for grandparents to give money to the parents to contribute, or ask the parents to set up an 'in-trust' account where grandparents are named as contributors. This way contributions still count toward CESG. Alternatively, grandparents can open their own RESP for their grandchild, but coordination is needed to avoid over-contributing (lifetime max is $50,000 across all RESPs for that child).

Question: What's the difference between Individual and Family RESP?

Answer: An Individual RESP covers one child and can be opened by anyone (parents, grandparents, relatives). A Family RESP covers multiple children who are related to the subscriber by blood or adoption, and allows you to share contributions and grants among siblings flexibly. Family plans are more flexible if you have multiple kids — if one doesn't pursue education, their unused grants and contributions can be used by siblings. Both types have the same $50,000 lifetime contribution limit per child and same CESG rules.

Question: What schools and programs qualify for RESP withdrawals?

Answer: RESPs can be used for a wide range of post-secondary education: universities, colleges, trade schools, CEGEPs in Quebec, apprenticeship programs, and even some programs outside Canada. The program must be at least 3 consecutive weeks long with 10+ hours per week of instruction, or 12+ hours per month for part-time programs. Online programs from accredited institutions also qualify. Basically, if the institution can provide a letter confirming enrollment, it likely qualifies. This is broader than most people think — it's not just traditional 4-year universities.

Question: When should I start withdrawing from the RESP?

Answer: You can start withdrawing as soon as your child enrolls in a qualifying program. There are two types of withdrawals: (1) Return of contributions (called PSE withdrawals) — always tax-free since you paid tax on this money already, and (2) Educational Assistance Payments (EAPs) — the grants and investment growth, taxed in the student's hands. Strategy: In first year, withdraw contributions only (tax-free). In later years when the student has tuition credits, withdraw EAPs — these are taxable to the student but they'll likely pay no tax due to low income and tuition credits. This minimizes overall tax.

Question: What happens to unused RESP money?

Answer: If money remains in the RESP after your child completes their education, you have several options: (1) Keep it open — RESPs can stay open for 35 years from opening, your child might pursue grad school later, (2) Transfer to a sibling's RESP if you have other children, (3) Transfer investment growth to your RRSP if you have contribution room (up to $50,000 limit), (4) Withdraw the growth as income (taxed at your rate + 20% penalty tax, but contributions always come back tax-free). The CESG must be returned to the government if not used for education. Given how broad 'qualifying education' is, most families can use the full RESP.

Question: Should I put the RESP in my name or my child's name?

Answer: Always in your name (the parent or guardian) as the subscriber, with your child as the beneficiary. Never open an RESP in the child's name. Here's why: As subscriber, you control when and how the money is withdrawn. If your 18-year-old decides they want to travel the world instead of going to school, they can't drain the RESP. Also, if the child doesn't pursue education, you get your contributions back and can transfer growth to your RRSP. If the child were the subscriber, you'd lose this control. The RESP is your account, held in trust for your child's education.