Can You Open an RESP at Age 18?

If you’re planning to head to college or university and want to take control of your education funding, you might be wondering: “Can I open a Registered Education Savings Plan (RESP) for myself?” The answer is yes!

Many people think RESPs are just for parents saving for their young children, but that’s not the full story. As long as you have a valid Social Insurance Number and are a resident of Canada, you can open an individual RESP in your own name, even as a student. While you won’t qualify for some government grants like the Canada Education Savings Grant (CESG) once you’re over 17, there may still be money on the table through programs like the Canada Learning Bond (CLB).

Opening an RESP at 18 can be a great move if you’re committed to furthering your education and want your savings to grow tax-free while you study. Below, we break down how opening an RESP at 18 works, what grants you may still be eligible for, and why it’s never too late to start planning for your future.

What Is an RESP and How It Works

A Registered Education Savings Plan (RESP) is one of the most popular ways Canadians save for post-secondary education. It’s a tax-sheltered account, which means the money deposited into it can grow without being taxed along the way.

An RESP can be used to pay for a child who is attending:

• Trade school
• CEGEP
• College
• University
• Apprenticeship program(s)

The money you’ve saved can be used towards post-secondary related costs, including:

• Tuition
• Books
• Tools
• Meal Plans
• Transportation
• Rent
• Other miscellaneous school expenses

Contribution Room

There is a lifetime contribution limit to all RESPs of $50,000 per beneficiary, but there is no annual RESP contribution limit.

Tax Considerations

You won’t get a tax deduction for putting money into an RESP, but the good news is your savings can grow tax-free while they’re in the plan.

When it’s time to withdraw the money for school, the money you originally contributed is not taxed; only investment earnings and money received through the Canada Learning Bond, if eligible, are. And since the funds are taxed in your name, you’ll likely pay little to no tax because students typically have a low income and fall into the lowest tax bracket.

Opening an RESP as an 18-Year-Old Student

If you’re 18 or older and have a valid Social Insurance Number, you can absolutely open a Registered Education Savings Plan (RESP) for yourself. In this case, you’d be opening what’s called an individual RESP, which means you’re both the plan owner and the beneficiary. This means you’re in control: you decide how much to contribute, and you’re the one the funds will benefit when it’s time to pay for school.

Even though most people think of RESPs as something parents open for their kids, they’re also a great tool for independent students looking to save for their own education. While you won’t get a tax deduction for your contributions, your savings can grow tax-free while in the RESP plan.

Eligibility for Government Grants at 18+

Once you turn 18, you’re no longer eligible for the Canada Education Savings Grant (CESG), which only applies to beneficiaries 17 and under. So, if you’re opening an RESP for yourself as an adult, you won’t receive the CESG.

If you live in British Columbia, there is a government grant for B.C. residents called the B.C. Training and Education Savings Grant, but you must have an RESP opened for you by the age of seven to qualify.

Canada Learning Bond (CLB)

The good news, however, is that you may still qualify for the Canada Learning Bond (CLB) even if your parents never opened an RESP for you. This is because the CLB is retroactive, which means the money adds up for each year you were eligible, starting from birth up until the end of the year you turned 15. If you were eligible during those years, the total amount can still be claimed later.

Therefore, if you were born in 2004 or later, you can still apply for the CLB anytime between your 18th birthday and the day before you turn 21.
If you’re eligible, the government will deposit $500 into your RESP, plus $100 for every year you qualified up to age 15. That could add up to a total of $2,000, and no personal contributions are required to receive this grant.

You may qualify if:

• You were born on or after January 1, 2004
• You live in Canada
• You have a valid Social Insurance Number (SIN)
• Your primary caregiver filed taxes each year
• Your family income met the eligibility criteria for at least one year

Can a Subscriber Still Contribute to an RESP at 18?

Yes, an RESP can stay open for up to 35 years, giving you plenty of flexibility. You can keep making contributions until the beneficiary turns 31, which is great news if you weren’t able to save early on or if you want to keep building the fund over time.

This extended window gives families room to plan around life’s ups and downs, whether that’s waiting until finances improve or supporting a child who decides to take time off before they pursue post-secondary education. It’s also useful for kids who go back to school later or pursue longer academic paths.

Alternatives If You’re No Longer Eligible for RESP Grants

If you’re over 18, you’ve already missed out on the CESG. But if you’re under 21, opening an RESP may still allow you to qualify for the Canada Learning Bond and earn up to $2,000 towards your education. But what if you don’t qualify for the CLB? Now what?

Don’t worry, you still have great options to save and invest for your education or future goals. While an RESP is a powerful tool for younger students, it’s not the only way to grow your money wisely.

Lifelong Learning Plan (LLP)

One alternative is the Lifelong Learning Plan (LLP), which lets you withdraw money from your Registered Retirement Savings Plan (RRSP) to pay for full-time education or training. You can take out up to $10,000 per year, to a maximum of $20,000, and you won’t be taxed on the withdrawals as long as you repay the amount within 10 years. It’s a helpful option if you’ve been working and contributing to an RRSP already.

Scholarships, Bursaries, and Grants

You can also explore scholarships, bursaries, and grants offered through your school, local organizations, private companies, or even your employer. These financial awards are often based on academics, community involvement, financial need, or even unique personal interests.
Every year, millions of dollars in scholarships and bursaries go unclaimed simply because students don’t know about them or assume they won’t qualify. So it’s absolutely worth taking the time to research and apply. You could end up with free money to help cover tuition, books, or living expenses, all without taking on extra debt.

Student Bank Accounts

You might also consider opening a student-focused bank account. While these accounts don’t really help you grow your money, they often come with benefits like no monthly fees or free Interac e-Transfers, and tools to help you budget and save while you’re in school.

Making the Most of a Late Start

Starting an RESP at 18 might feel late, but there’s still time to make it count, especially if you plan to attend post-secondary school in the next few years. While you’re no longer eligible for the CESG, you may still qualify for the CLB. Plus, you can still take advantage of tax-deferred growth and flexible investment options within the plan.

Even if your parents or guardians didn’t open an RESP for you earlier, you can still contribute up to the lifetime limit of $50,000 and let that money grow. Remember, while there is a lifetime limit, there is no annual contribution limit, so you can contribute as much as you want up to that $50,000. So focus on building a budget that includes consistent contributions, even if they’re small. Every bit helps.