Before you open an RESP, understand who the key players are. 

Subscriber

This is the person who applies for the RESP. It’s often the parent but could be a family member or friend. The subscriber must have a social insurance number.

Student

This is who the RESP is for. They’ll use the money for their post-secondary education. They must be a Canadian resident and have a social insurance number. The student is referred to as the beneficiary in government documents.

Siblings

Siblings are brothers and sisters, including adopted, half-brothers, half-sisters, and step siblings.

Joint subscriber

If you open an RESP with your spouse or common-law partner, they’re called the joint subscriber. Their rights are limited: they can’t make changes to the RESP or access plan information. You will be able to specify whether their consent is required for transfers and withdrawals.

You can also open an RESP with your former spouse or former common-law partner, provided you are both the legal parents of the student(s). For example, you are not entitled to open an account for a step-child with a former spouse or former common-law partner.

Please note the joint subscriber option is not available in Quebec.

Spouse

A person to whom you are legally married.

Common-law partner

A person who is not your spouse, with whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. They:

• Have been living with you in a conjugal relationship, and this current relationship has lasted for at least 12 continuous months.
  

(Note: In this definition, “12 continuous months” includes any period that you were separated for less than 90 days because of a breakdown in the relationship.)

• Are the parent of your child by birth or adoption.

• Have custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on that person for support.
  

Primary caregiver

The primary caregiver is the individual who is primarily responsible for the care of the student and is eligible for the Canada Child Benefit (CCB). Although the primary caregiver is usually a parent, it could be a grandparent or a legal guardian.

If the primary caregiver isn’t the student’s custodial parent/legal guardian, you can’t proceed with this RESP application.

Without information on the primary caregiver or their cohabiting spouse or common-law partner, an application for additional grants or bonds cannot be made.

Custodial parent/legal guardian

This is the individual that has the responsibility of taking care of the student and provides the social insurance number of the student to the subscriber(s).  

Open an RESP and start contributing. If the child is 17 or under, you’ll automatically get the basic Canada Education Savings Grant (CESG) – free money from the federal government. The government will match 20% of your contributions, up to $500 per year for a maximum of $7,200 per lifetime per child. Contribute $2,500 per year as early as possible to receive the maximum basic grant.

If you need to skip a year or two, you can still catch up on the grants subject to government rules. Children from middle and low-income families may be able to get the additional CESG from the federal government and get it sooner.

Lower income families may also qualify for an additional $2,000 per lifetime with the Canada Learning Bond. No contribution needed. Just open an RESP.

Additional provincial grants

If you live in British Columbia or Quebec you may be eligible for a provincial grant. We’ll let you know if you need to do anything to apply.

Yes, the lifetime maximum is $50,000 per student across all RESP plans for the student.

Keep in mind an RESP can be used for many programs, including trade schools or apprenticeships. Plus, you can generally keep it open for 35 years after the year you open the RESP – which allows for schooling as career and interests change. Another option is to transfer the money to the child’s sibling if you have a family RESP. Or, where conditions are met, you can transfer the investment income to your RRSP or spousal RRSP. For more details, see your member booklet, such as the section called What happens when you want to withdraw an accumulated income payment.

You can withdraw your contributions at any time, but if the contributions attracted grants and you withdraw those contributions while the child is not attending a post-secondary program, the corresponding grants will have to be repaid.

Educational inflation, or eduflation as it’s sometimes called, is the gradual rise of education costs over time. Keep this in mind when you open an RESP.

If a university charges $15,000 per year today, in 15 years it could cost $30,000. Save as much as you can as early as possible to get the most out of your RESP.

If the child is currently between 6 and 9, you’ll likely be able to apply for the grant as part of your RESP application. If the child isn’t 6 yet, wait until they are and then fill out the BC Training and Education Saving Grant (BCTESG) application form. Set yourself a reminder so you can be sure to receive this grant. Children are only eligible when they’re 6 and before they turn 9.

Upload your completed form along with proof of BC residency for the student’s custodial parent/legal guardian (primary caregiver) to your Canada Life online account for your workplace savings. Proof of residency is one of the following:

• BC driver’s license
• BC identification card with picture
• BC services card
• BC utilities bill within the last 3 months that shows the current address of the student’s primary caregiver

In the meantime, you can go ahead and open your RESP now and start saving.