What are the advantages of starting to save early in an RESP?
Between the diapers, sleep deprivation and the endless search for lost cuddly toys, your child’s post-secondary studies may seem light-years away from your daily routine. But time is your best ally, because every dollar you invest works while you sleep. This is thanks to the magic of compound interest, but also generous government grants for registered education savings plans (RESPs).
In fact, now is always the best time to prepare for the future of your little scholars. Investing early in education savings not only prepares you for your child’s financial future, but it also gives you invaluable peace of mind for the next 15 to 20 years. Here is the real impact of opening an RESP as soon as the baby is born, compared to opening it later.
Benefit from the leverage of compound interest
Not only will your investment work on a tax-sheltered basis, but the financial gain will be greater if you start early, because of accumulated long-term returns. As a comparison, here are three scenarios where the total investment is $10,800. All subscribers will receive the minimum 30% bonus1 in grants, representing a total of $3,240.
- Catherine chooses to open an RESP as soon as her son is born. She will need to contribute $50 a month—roughly equivalent to one restaurant visit in 2026! —for 18 years to reach $10,800. This will generate $10,140 in returns.
Value of the RESP: $24,180 - Charles-Hugo chooses to open an RESP for his 8-year-old godson. He will have to deposit $90 a month for ten years to reach the same goal, which will generate $4,329 in returns.2
Value of the RESP: $18,369 - Claude wants to open an RESP for his 13-year-old granddaughter. He will invest $180 a month for five years, earning $2,206 in returns2 in the process.
Value of the RESP: $16,246
Bottom line: investing from birth can generate almost five times more in returns compared to waiting until the child is a teenager... and considerably reduces your monthly budget!
How much could your RESP earn?
It’s simple: enter your child’s age, add your estimated monthly payments, and discover what their RESP will be worth when they turn 18.
Put your grants to work as soon as possible
The Canada Education Savings Grant (CESG) and the Quebec Education Savings Incentive (QESI) provide up to $7,200 and $3,600 respectively per beneficiary, in the form of a bonus ranging from 30% to 60%3 on your investment. It would be a shame to leave these gifts from our governments on the table!
However, there is a contribution cap of $2,500 per year for these two forms of financial assistance. A good strategy to maximize the grants for your RESP in 2026 would be to start contributing $208 per month in January. In this way, the money you receive will swell your nest egg and can generate more accumulated interest over time.
Additional CESG and QESI eligibility
Eligible children from less affluent families could receive up to $100 more each year thanks to the additional CESG. For 2025, an adjusted family net income of $57,375 or less gives access to an additional 20% on the first $500 invested in an RESP, while an adjusted family net income between $57,375 and $114,750 offers an additional 10%.
- Find complete information on the Government of Canada website.
In Quebec, the additional QESI is also designed to help low- and middle-income families. Calculated on the basis of family income, this amount can be added to the basic amount up to $50 per year.
- Visit the Revenu Québec website for more information.
Receive the Canada Learning Bond (CLB) without even paying contributions
In addition to the additional CESG and QESI, eligible families have access to the Canada Learning Bond (CLB). Unlike the two previous grants, this federal financial assistance is triggered just by opening an RESP. You receive $500 in your first year and an additional $100 for each subsequent year of eligibility (see box below), up to a limit of $2,000. Again, the sooner you receive these amounts, the more time you will have to generate returns.
Eligible income for CLB
For the period from July 1, 2025, to June 30, 2026, the primary guardian’s adjusted family income4 must be less than or equal to $57,375 for a family with one, two or three children, less than $64,733 for a family with four children and less than $72,123 for a family with five children.
- Find out more on the Government of Canada website.
Is it too late to optimize an RESP at age 10 or 12?
Absolutely not. It is entirely possible to catch up on unused grants from previous years by contributing up to $5,000 per year instead of $2,500. So, it’s not too late to reclaim these government sums and put your savings to work for several more years.
If your child is not yet 15, don’t worry that you’ve missed the boat. Talk to an RESP advisor at Kaleido to establish a personalized savings strategy for your family.
Maximum age for grants
In fact, government grants generally cease at the end of the calendar year in which each beneficiary turns 17. However, if you want to open an RESP for a teenager over age 15, you must meet one or more of the following conditions to remain eligible for grants:
- Have already contributed a minimum of $2,000 to their RESP before the calendar year of their 15th birthday;
- Have deposited at least $100 per year for four years prior to that date.
If you don’t meet these criteria and you open an RESP for a 16- or 17-year-old, you will not be able to access the grants. On the other hand, your savings will continue to enjoy tax-sheltered growth.
Are you unsure about your situation?
It is easy to find out if your teenager still has access to government grants.
Is it better to wait for the economy to stabilize before investing?
With the cost of living in 2026, education savings can quickly take a back seat. But whether your RESP contribution is enough to cover a coffee or a meal out, the important thing is to keep the door open to grants. Our mission is to make every $10 in your pocket work as hard as you do.
So, if you’re still undecided whether to invest small amounts early or large amounts later, the best strategy is to invest now, according to your capacity. With Individual RESPs from Kaleido, you can always adjust or stop your contributions and restart them whenever you like. This flexibility will enable you to deal with life’s financial contingencies.
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3. Canada Education Savings Grant (CESG) from 20% to 40% and Quebec Education Savings Incentive (QESI) from 10% to 20%, according to adjusted family net income. Certain conditions apply. See our prospectus at kaleido.ca.
