RESP Government Match

Saving for your child’s education is one of the best financial decisions you can make. And with the Canada Education Savings Grant (CESG), the federal government can help you maximize your savings goals.

For every dollar you contribute to a Registered Education Savings Plan (RESP), the government will match a portion through the CESG. Before you begin saving, however, there are rules, limits, and strategies you need to consider if you want to receive the full amount of government grants you’re entitled to.

We’ll walk you through how the CESG works, who qualifies, how to catch up if you missed your contribution limits, and more, below.

How the Canada Education Savings Grant Matches Your Deposit

The CESG government grant gives you 20% back on the first $2,500 you contribute to an RESP each year, which is $500 annually. The lifetime maximum CESG amount your child can receive is $7,200.
One thing to clarify is that if your RESP contributions exceed $2,500 within a calendar year, unless you qualify to collect back grants from previous years, you won’t get extra RESP grants from the CESG.

Additional CESG for Low-Income Families

Saving for your child’s post-secondary education is expensive, especially for low-income families. In addition to the standard 20% match, some Canadian families qualify for an additional 10% to 20% on the first $500 of RESP contributions, depending on their household income. In other words, low-income households could receive up to an additional $100 per year.

Here’s a quick breakdown of how additional CESG works:

Adjusted Family Net Income	Additional CESG on First $500	Total CESG on First $500
Less than $55,867 annually.	20% extra	40%
$53,359 – $111,733 annually.	10% extra	30%
More than $111,733 annually.	No additional CESG	20%

Catch-Up Rules for RESP Government Grants

If you opted not to start saving early or missed contributions for a year, the good news is that you’re not out of luck. One benefit of RESPs is that you can essentially “catch up” on your unused contribution room from previous years. Here’s how it works:

Let’s say you forgot to contribute to an RESP in 2023. In 2024, you decide to contribute $5,000. On your first $2,500, you’ll receive the standard $500 (20%). On the second $2,500, you’ll receive another $500 in CESG, totalling $1,000.

As contributions can be carried forward, it’s a great way to accelerate earnings and get you back on track.

Age 16–17 Eligibility & Pre-Funding Requirements

When it comes to RESP contributions, there’s a lesser-known rule that kicks in when RESP beneficiaries turn 16. To keep receiving grants from the Canadian government at the ages of 16 and 17, certain conditions must be met before beneficiaries turn 15:

• A minimum $2,000 must be contributed to an RESP. Or;
• A minimum $100 per year over any four years must be contributed.

Checklist

• Your child is 15 years old or younger: You’re eligible for CESG.
• Your child is turning 16 or 17 next year: Check past RESP contributions.
• Didn’t meet contribution minimums? The child is not eligible for CESG after 15.

Maximizing Grants with Your RESP

To maximize your CESG grant when you open an RESP, timing matters. While there are no rules as to when you can contribute, here are two smart savings strategies to ensure you receive your full match each year:

Option 1: Monthly Contributions

Set up automatic transfers of $210 a month into your RESP account to reach the $2,500 CESG match of $500.

Option 2: Annual Lump-Sum

Contribute to an RESP once a year with a $2,500 lump sum payment before December 31st each calendar year.

Combining CESG with Provincial Grants

In some provinces, additional grants are available to put toward your child’s post-secondary education:

British Columbia Training and Education Program (BCTEP)

Families in British Columbia can receive a one-time $1,200 grant from the provincial government to put toward their child’s education.

Québec Education Savings Incentive (QESI)

The Quebec grant will match your annual RESP contributions by 10% up to $250 a year, $3,600 lifetime maximum per child.

Canada learning Bond (CLB)

The Canada Learning Bond is available for children in low-income families born in 2004 or later. This grant offers an initial $500, then another $100 for each year of eligibility up to the age of 15 for a total contribution of up to $2,000.

Avoiding Clawbacks & Penalties

To avoid clawbacks and penalties, pay attention to these RESP rules:

• Depositing more than the RESP contribution limit: RESPs have a lifetime contribution limit of $50,000 per child. Over-contributing can lead to a loss of grant money.
• Withdrawing funds: Withdrawing funds when your child is not enrolled in a qualified post-secondary program can force you to repay government incentives.
• Changing beneficiaries: Switching account beneficiaries may lead to partial CESG clawbacks.

Best Practices

Monitor your RESP using your CRA My Account to track your grant room.
Adjust your contributions annually to stay within RESP contribution limits.
Talk to your RESP provider before making any big changes or withdrawals for your child’s education, whether they pursue post-secondary education or not.

Action Plan & Tools

To ensure you claim your full CESG amount for 2025, here’s what you need to do:

Week 1

• Log in to your CRA My Account and review your grant room.
• Double-check to see if you missed any contributions from previous years.

Week 2

• Use Embark’s RESP calculator to estimate your RESP contributions so you can maximize the amount the government contributes.
• Set up automatic monthly transfers with your financial institution or plan for a one-time lump sum deposit.

Week 3

• Confirm whether your household income is eligible for additional provincial grants.

Week 4

• Double-check that your RESP contributions are maximized by December 31.

Final Thoughts

CESGs are one of the best ways you can grow your child’s education funds on top of your own contributions. Take advantage of Embark’s online tools and calculators or speak with a financial planner today.