Imagine putting $2,500 toward your child’s future education.
Then another $500 is added.
Not from investment returns.
From the Government of Canada through the basic Canada Education Savings Grant, assuming the eligibility requirements are met.
That’s the basic idea behind the CESG.
For 2026, the basic CESG is generally 20% of the first $2,500 contributed annually to an eligible child’s RESP.
That means:
$2,500 contribution
$500 basic CESG
=
$3,000 going toward education savings
There can also be additional CESG for eligible families based on adjusted family net income, and the CESG has a $7,200 lifetime maximum per eligible beneficiary.
Why starting earlier can matter
The grant itself is useful.
But then something else can happen.
The contribution and grant can potentially remain invested for years.
Think:
Your contribution
Government grant
Potential investment growth
Time
That’s why an RESP isn’t merely another savings account to understand someday when your child is older.
It can be worth understanding early.
But don’t blindly chase the grant
Your overall finances still matter.
If you have no emergency fund or are carrying very expensive debt, those issues deserve attention too.
Financial planning is about putting the pieces in the right order.
Nirvair takeaway
When saving for your child’s education, don’t only ask:
“How much can I contribute?”
Ask:
“What grants might my child be eligible for, and how much time does the money have?”
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