Settings
6-8% is typical for a balanced portfolio
Then $2,500/yr for CESG
Your realistic yearly amount
4 Strategies Compared
Steady $2,500/Year
Contribute $2,500 every year for 18 years. Maximizes the full $7,200 CESG over the child's lifetime.
Front-Loaded + Annual Contributions
Large lump sum in year 1, then $2,500/year to keep collecting the $500 CESG each year. Compare the result using your assumed return and available savings.
$50,000 Lump Sum (Year 1)
Deposit the full $50,000 lifetime max immediately. Maximizes compound growth but only gets $500 CESG in year 1 — you miss $6,700 in free government grants.
Custom Amount
Set your own annual contribution to see what you can realistically achieve.
Growth Over 18 Years
How each strategy compounds over your child's lifetime
Where the Money Comes From
Your contributions vs. free government money vs. investment growth
Year-by-Year: Front-Loaded Scenario
Deposit $16,500 in year 1, then up to $2,500/year until the lifetime contribution limit binds
| Year | Deposit | CESG | Total Contributed | Balance |
|---|---|---|---|---|
| Birth Year | $16,500 | $500 | $16,500 | $18,190 |
| Year 1 | $2,500 | $500 | $19,000 | $22,673 |
| Year 2 | $2,500 | $500 | $21,500 | $27,470 |
| Year 3 | $2,500 | $500 | $24,000 | $32,603 |
| Year 4 | $2,500 | $500 | $26,500 | $38,096 |
| Year 5 | $2,500 | $500 | $29,000 | $43,972 |
| Year 6 | $2,500 | $500 | $31,500 | $50,260 |
| Year 7 | $2,500 | $500 | $34,000 | $56,989 |
| Year 8 | $2,500 | $500 | $36,500 | $64,188 |
| Year 9 | $2,500 | $500 | $39,000 | $71,891 |
| Year 10 | $2,500 | $500 | $41,500 | $80,133 |
| Year 11 | $2,500 | $500 | $44,000 | $88,953 |
| Year 12 | $2,500 | $500 | $46,500 | $98,389 |
| Year 13 | $2,500 | $500 | $49,000 | $108,487 |
| Year 14 | $1,000 | $200 | $50,000 | $117,365 |
| Year 15 | — | — | $50,000 | $125,580 |
| Year 16 | — | — | $50,000 | $134,371 |
| Year 17 | — | — | $50,000 | $143,777 |
| Total | $50,000 | $7,200 | — | $143,777 |
Individual vs. Family RESP
Choose the right plan type before you open an account
Individual RESP
- • One beneficiary (one child)
- • Anyone can be named — doesn't need to be your child
- • Simpler to manage
- • A beneficiary change or sibling transfer may be possible, subject to age, relationship and grant rules
- Best for: only children, or grandparents contributing for a specific grandchild
Family RESP
Check eligibility- • Multiple beneficiaries (must be related by blood or adoption)
- • Sharing or transfers have conditions; the CLB stays attached to its beneficiary
- • Same $50,000 lifetime limit per child, same $7,200 CESG per child
- • More flexible — covers you if plans change
- Best for: families with 2+ children (or planning to have more)
What If Your Child Doesn't Go to School?
Ask the provider about keeping the plan, eligible transfers and the consequences of closing it.
A refund of original contributions is generally tax-free. Fees and investment losses can reduce the balance available; grant repayment rules may apply.
The grants go back to the government. You don't lose anything — you just don't keep the free money.
Same as CESG — returned, but you never contributed anything for it anyway.
An AIP is available only when its conditions are met and may attract regular and additional taxes. Eligible retirement-plan transfers can reduce tax, subject to deduction room, subscriber eligibility and statutory limits.
Other options: The provider can explain the plan closing deadline, beneficiary changes and transfer conditions. Eligible education can include programs outside university, but each institution and course must meet the applicable rules.
The CESG Is Free Money
The government gives you 20% on the first $2,500 you contribute each year — that's $500/year, up to $7,200 lifetime. Don't leave it on the table.
Time Beats Timing
Earlier deposits earn more growth under a positive-return assumption but face market risk sooner. A full lifetime contribution in the birth year also leaves no contribution room for later basic CESG. The scenarios use different contribution amounts and timing, so their ending balances alone do not measure investment performance.
Withdrawals Are Smart Too
EAPs are taxable to the student and subject to education-payment conditions and limits. Tax depends on their total income and available credits.
Estimates only. Starts in the birth year with no prior contributions and assumes eligibility through age 17. Contributions and basic CESG are added at the start of each year. Excludes catch-up grants, additional CESG, CLB, provincial incentives, fees and withdrawal tax. Returns are assumptions, not forecasts; losses are possible. Confirm eligibility and contribution records across all RESPs with your provider before acting.