The RESP is one of the best investment vehicles for Canadian families — primarily because of the government grants that effectively provide an immediate 30% return in Quebec.
CESG: Federal Grant
Canada Education Savings Grant: 20% on the first $2,500/year = $500 free per child annually. Lifetime maximum CESG: $7,200. Available until end of calendar year the child turns 17.
Additional CESG for Lower-Income Families
Income under $55,867 (2025): additional 20% on first $500 = extra $100/year. Income $55,867–$111,733: 10% extra on first $500. These additional grants are frequently missed.
QESI: Quebec's Additional Grant
Quebec Education Savings Incentive: 10% on first $2,500/year = additional $250. Lifetime maximum QESI: $3,600. Combined Quebec result: 30% on first $2,500 = $750 free annually per child.
The Carry-Forward Rule
One year of unused CESG room can be carried forward — contribute $5,000 in a catch-up year and receive $1,000 CESG. But only one year can be caught up at a time; missing more than one consecutive year permanently loses grants.
Investment Strategy
Under 10: 80–100% equities. Ages 10–14: 60–70% equities. Ages 15–17: transition to 30–50% equities. Final year: mostly low-risk to protect against market timing risk at withdrawal.