Did you know that Registered Education Savings Plans (RESPs) have been around since the 1970s? While putting money aside for education is nothing new, many Quebec parents are still unfamiliar with education savings and how it works.
In 50 years, people have had plenty of time to share misconceptions with one another without knowing the facts behind them. But the reality is that an RESP gives you access to thousands of dollars in government grants to help fund your children’s education. You wouldn’t want to miss out because of a few mistaken assumptions, right?
The RESP at a glance
- The RESP is available to eligible Canadian families.
- Grants can boost your savings by up to $12,800.1
- RESP funds can be used to pay more than tuition fees.
- Contributions remain the property of the person who opens the RESP.
- More than 8,000 study programs are eligible for funding.
To help you fully understand education savings, let’s start by clearing up some common myths!
Myth #1: Education is free in Quebec
False. While elementary and secondary education are relatively inexpensive, post-secondary education is a significant expense that few parents fully anticipate in their family budget.
In 2025, the cost of a post-secondary program, including two years of college and three years of university, was estimated at $105,0002 if the child had to move away from home for their studies. Ten years from now, that same course of study could cost nearly $132,0002 once you add up tuition, a computer, books, transportation, housing, food, unforeseen expenses… and inflation!
Several factors will affect the cost of education, so until you know your child’s choices, it’s best to start preparing as soon as possible.
Myth #2: The TFSA or RRSP is a better deal than the RESP
Not at all. RESPs offer benefits that neither TFSAs nor RRSPs provide: direct government grants that are added to your contributions. In Quebec, federal and provincial grants combined can increase your family’s savings by 30% to 60%,4 depending on your financial situation.
| Grant | Eligibility | Amount available per child |
|---|---|---|
| Canada Education Savings Grant (CESG) | For Canadian families | Up to $ 7,200 |
| Quebec Education Savings Incentive (QESI) | For Quebec families | Up to $3,600 |
| Canada Learning Bond (CLB) | For financially eligible Canadian families | Up to $2,000 |
Furthermore, even though contributions to an RESP are not tax-deductible, the funds grow tax-free as long as they remain in the plan. The main difference between an RESP and an RRSP or TFSA is that the RESP was specifically designed for education.
RESPs, RRSPs, TFSAs, FHSAs, and RDSPs: Understand the differences with our quick reference guide.
Myth #3: Only affluent families can afford to save for education
No. The RESP is available to every family, regardless of income. Some families with lower incomes may even be eligible for additional CESG and QESI amounts, in addition to the Canada Learning Bond (CLB). This last grant allows financially eligible families to receive up to $2,000 per child born after December 31, 2003, without even having to contribute to an RESP. All you have to do is open an account to let your child benefit from this grant.3
Myth #4: I will lose it all if my child doesn’t go to university
False. First, the invested capital always belongs to the subscriber, regardless of what the young beneficiary chooses to do after high school.
Second, eligible programs are not limited to universities: more than 8,000 are recognized, including pre-university or technical college programs (DEC) as well as vocational programs (DEP).
Third, if your child does not pursue a post-secondary education, you can still:
- transfer the funds to another child’s RESP;3
- transfer the sums to your retirement savings;3
- use the accumulated capital and interest3 to support your young person in another project, such as buying their first home!
What’s more, the RESP has a 35-year lifespan, which gives your child plenty of time to explore and define their future.
Myth #5: RESPs can only be used to pay tuition fees
False. Once withdrawn, funds from an RESP can be used to cover any expenses related to post-secondary education: school supplies, a computer, groceries, rent, or even a car if it’s needed to get to class. In order for you to make withdrawals, your beneficiary simply needs to provide proof of enrolment in an eligible program.
In summary
These five myths are hard to dispel, but the reality is simpler—and more reassuring—than you might think: education savings are accessible to all families, these savings are supplemented by generous grants, and they stay flexible no matter what the future holds. When properly integrated into your family financial plan, an RESP becomes a practical way to build your children’s educational future.
Estimate the value of your RESP
Find out how much your education savings could be worth by the time your child turns 18.
FAQ about RESPs
Yes. Whether large or small, your contributions give you access to government grants and can generate returns over time. That’s one of the benefits of starting to contribute to an education savings plan early.
In Quebec, an eligible recipient can receive up to $12,8001 in federal and provincial grants over a lifetime. The maximum amount of contributions eligible for the CESG and the QESI is $2,500 per year, and you have until the end of the calendar year in which your beneficiary turns 17 to make these contributions, subject to certain conditions.
Absolutely. You can reclaim your unused grant entitlements. In addition to the annual contribution of $2,500, you can add another $2,500, allowing you to obtain grants on a maximum annual contribution of $5,000.
No. Although it’s recommended to start early, you can still open an RESP for your teen and receive the grants to which they are entitled until the end of the calendar year in which they turn 17. However, you must meet certain requirements before your child turns 15.
1. The lifetime limit is set at $7,200 per child for the Canada Education Savings Grant (CESG), and at $3,600 for the Quebec Education Savings Incentive (QESI). Canada Learning Bond (CLB) of up to $2,000 per beneficiary, for children born after December 31, 2003, from families who meet the financial criteria. Certain conditions apply. Refer to the prospectus at Kaleido.ca.
2. Cost to complete two years of CEGEP and three years of university in Quebec. 3.45% annual increase in tuition fees. Housing included and 2.1% annual increase in living expenses for students away from home. These costs may vary depending on several factors, such as the program, duration, etc. Sources: Ministère de l’Éducation, Ministère de l’Enseignement supérieur, Ministère de la Famille, Statistics Canada and Canada Mortgage and Housing Corporation.
3. Certain conditions apply. See our prospectus at Kaleido.ca.
4. Canada Education Savings Grant (CESG) from 20 to 40%, and Quebec Education Savings Incentive (QESI) of 10% to 20%. Based on adjusted family net income. Certain conditions apply. See our prospectus at Kaleido.ca.
