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Education Planning

RESP Checklist

A Registered Education Savings Plans (RESP) is an excellent way to save for your child or grandchild’s education. If you invest $2,500 a year for 18 years inside an RESP, you can accumulate approximately $100,000 (assuming an 8% rate of return and $7,200 of Canada Education Savings Grants).

Here are a few tips to help you save as much as possible.

  • Maximize annual contributions - contribute up to $5,000 per year per beneficiary (the maximum contributions of $50,000 will be reached in 10 years).
  • Take advantage of the CESG - Since 2007, $2,500 of CESG contribution room has accumulated per year for each child under 18 (special rules apply for 16 and 17 year olds) (from 1998-2006, $2,000 of CESG room was accumulated). A beneficiary may receive a lifetime CESG maximum amount of $7,200.
  • Review your investments - there is no foreign content restriction on investments in an RESP.
  • Contribute regularly - contributions can be made annually or, if you prefer, as often as once a month.
  • Since individual RESP contribution room cannot necessarily be carried forward, be sure and make your annual RESP contribution by the deadline, December 31.
  • Ensure the beneficiary has a Social Insurance Number in order to collect the Canada Education Savings Grant (CESG).
These articles will help you understand the options available when planning for your child's education:

Education Planning, RESP Book, RESPs and the Canada Education Savings Grant, Taking Money Out of an RESP, Talk with our Kids about Money, BMO Smart Steps for Parents, BMO Education Savings Calculator