How Much Should I Put in an RESP per Year?

If you’re saving for your child’s post-secondary education through a Registered Education Savings Plan (RESP), you’re already on the right track. But one of the most common questions parents ask is: How much should I be putting in each year? The answer depends on your financial goals, your budget, and how much you’d like to take advantage of the free money through government grants and provider incentives.

First, you don’t need to max out the RESP’s lifetime contribution limit right away to make it worthwhile. Contributing just the right amount each year can help you unlock the full benefit of the Canada Education Savings Grant (CESG) and keep your savings strategy sustainable.

So, how much should you put into an RESP per year? Let’s find out.

Understanding RESP Contribution Limits

Before deciding how much to contribute to an RESP each year, it’s important to understand the limits that come with the plan.

Lifetime Contribution Limit

First, there’s the lifetime RESP contribution limit—you can contribute up to $50,000 per child over the life of their RESP. This cap applies no matter how many RESP accounts are opened for that child, or who opens them (parents, grandparents, etc.). Go over the limit, and you could face a 1% monthly tax penalty on the excess amount until it’s withdrawn.

Annual Contribution Limit

Unlike some other registered accounts, there’s no annual contribution limit. That means you could contribute $10,000 one year and nothing the next, as long as you don’t exceed the $50,000 total.

However, the Canada Education Savings Grant (CESG) only matches 20% of your contributions, up to a maximum of $500 per year per child (and a lifetime max of $7,200). So, while you can contribute more than $2,500 in a year, doing so won’t earn you additional CESG that year.

How Much Should You Contribute Annually?

So, how much should you actually put into your child’s RESP savings each year? The sweet spot for most families is $2,500 per year because that’s the ideal amount to get the maximum Canada Education Savings Grant (CESG) for the year.

The CESG matches 20% on the first $2,500 you contribute annually—so, that’s $500 in free money per year, per child. Over time, that adds up to a lifetime maximum of $7,200 in CESG per child. If your goal is to get the full grant amount, contributing $2,500 a year for about 14–15 years will get you there. While you can contribute more than that per year, keep in mind that if you max out your contribution limit too early, you may miss out on the government’s annual CESG contributions.

As for the Canada Learning Bond (CLB), you don’t need to contribute anything to receive it—the CLB is based on your family’s income. Eligible children can receive up to $2,000 total, starting with an initial $500 deposit and $100 annually until age 15.

What if you missed a few years?

Now, if you missed a few years, don’t worry—you can catch up. The Canadian government allows you to claim some of the CESG that you didn’t collect from past years. This is especially helpful if you couldn’t contribute regularly every year.

So, whether you’re starting early or catching up, the best annual contribution depends on your situation. But if you’re aiming to maximize government grants, $2,500 per year is the magic number—and catch-up contributions can help you make up ground if you’ve missed out in the past. Even contributing just 5 dollars a week can accumulate to a semester’s worth of savings in 18 years, so remember the best thing to do is just get started!

Factors to Consider When Deciding How Much to Contribute

Deciding how much to contribute to your child’s RESP each year isn’t a one-size-fits-all decision. While $2,500 per year may be the ideal target for maximizing government grants, it’s not always realistic—or necessary—for every family. Here are a few key things to think about when determining what works best for you.

Your Family Budget

First and foremost, take a look at your monthly budget. RESP contributions are important, but they shouldn’t come at the expense of your financial stability. Make sure you’re still covering your essential expenses, saving for retirement, and paying down high-interest debt.
If money’s tight, it’s okay to start small. Even modest contributions can grow over time thanks to investment returns and government grants. Plus, you can always make catch-up contributions later if your financial situation improves.

Your Priorities

It’s all about finding the right balance. Contributing to your child’s education should fit alongside other goals, like building an emergency fund, saving for a home, or investing in your Registered Retirement Savings Plan (RRSP).

Remember, your child may have access to student loans or scholarships later, but you won’t have that option for your retirement. Taking care of your own long-term needs first puts you in a better position to support your child when the time comes.

How Many Children You Have

If you have more than one child, a Family RESP can be a flexible and efficient option. With a Family Plan, all beneficiaries must be related by blood or adoption, but you can share contributions and grants between children. That way, if one child doesn’t end up using the full amount, the funds (and grants) can be used for another sibling.

If you prefer to keep things separate—or if your children aren’t all eligible under a Family Plan—you can also open Individual RESPs for each child. Just remember that the $50,000 lifetime limit applies to each child, regardless of how many accounts are opened.

RESP Growth vs. Other Investments

One of the biggest benefits of an RESP is the tax-free growth on your investments—plus the added boost from government grants like the CESG and, if eligible, the CLB. Compared to regular savings accounts or taxable investments, the RESP offers solid value, especially if you’re planning for education costs down the road.

That said, if you’re already maxing out your RESP contributions or you’re close to the lifetime limit, you might consider other tax-advantaged accounts like a TFSA for additional savings.

Final Thoughts

Figuring out how much to contribute to your child’s RESP each year doesn’t have to be overwhelming. Whether you’re aiming to maximize government grants, catch up on missed years, or simply start with what your budget allows, the most important step is just getting started. Every contribution—big or small—can make a real difference over time.

As you plan your RESP strategy, consider your family’s unique financial goals, how education savings fit into your broader budget, and whether a family or individual RESP makes the most sense for you. And remember, the earlier you start, the more time your money has to grow through compound interest and tax-deferred investment gains.

Ready to start an RESP? At Embark, we make it easy. Whether you’re setting up your first plan or managing multiple accounts, our team is here to guide you. We’ll help you make smart contributions, steer clear of overcontribution penalties, and take full advantage of government benefits like the Canada Education Savings Grant (CESG).

With intuitive tools, customized guidance, and ongoing support, Embark helps you stay organized and on track—so your child’s education savings can grow with peace of mind. Whether you’re just beginning or looking to catch up on missed opportunities, we’re here to simplify the RESP process and help you get the most out of every dollar you invest.