Registered Education Savings Plan (RESP): A Smart Way to Save for Your Child's Future in 2025
Higher education can be one of the most significant expenses in a family's financial plan, but with early and strategic saving, you can set your child up for success. A Registered Education Savings Plan (RESP) is one of the most effective ways to fund your child's post-secondary education while benefiting from tax-free investment growth and government grants that help your savings grow faster.
What is an RESP?
A Registered Education Savings Plan (RESP) is a tax-advantaged investment account designed to help Canadian families save for a child's post-secondary education.
- Contributions are not tax-deductible, but investments grow tax-free until withdrawn for educational expenses
- The government offers grants and bonds to boost your savings
- Funds can be used for tuition, books, housing, and other eligible education-related expenses
Contribution Details
Key Contribution Facts
2025 Government Support Programs
Canada Education Savings Grant (CESG)
- 20% match on annual contributions up to $2,500
- Maximum $500 per year per child
- Additional 10% or 20% for lower-income families
- Lifetime maximum of $7,200
- Unused amounts can be carried forward
Canada Learning Bond (CLB)
- Up to $2,000 per eligible child
- Initial $500 plus $100 annually until age 15
- No contributions required
- Income-based eligibility
Provincial Grant Programs (2025)
BC Training and Education Savings Grant
- One-time $1,200 grant
- For children ages 6-9
- No contributions required
- BC residency required
Québec Education Savings Incentive
- 10% match on annual contributions up to $2,500
- Additional amounts for lower-income families
- Lifetime maximum of $3,600
- Québec residency required
2025 RESP Withdrawal Rules
Educational Assistance Payments (EAPs)
- Full-time students: Up to $8,000 for first 13 weeks
- Part-time students: Up to $4,000 for every 13 weeks
- Annual threshold limit: $28,881 (for 2025)
- Taxed in student's name (typically lower tax bracket)
If Child Doesn't Attend School
- Keep RESP open (up to 35 years)
- Transfer to another child's RESP
- Move up to $50,000 to RRSP
- Withdraw with applicable taxes/penalties
Strategic RESP Planning for 2025
- Contribute $2,500 annually to maximize the basic CESG
- Use carry-forward CESG room (maximum $1,000 grant per year)
- Apply for provincial grants if eligible
- Consider family income thresholds for additional grants
- Plan withdrawals strategically to maximize tax efficiency
Need Help with Your RESP Strategy?
At Altiora Wealth Management, we help parents and grandparents in Fredericton, New Brunswick, and across Atlantic Canada create customized RESP strategies that maximize government benefits and long-term growth. Our experts can help you navigate the 2025 rules and opportunities to build the strongest education fund for your child's future.
Schedule a Consultation