What Is a Family RESP?

If you’re saving for your child’s post-secondary education, a Registered Education Savings Plan (RESP) is one of the best tools out there. An RESP gives you access to thousands of dollars in free government grants to help cover tuition and other school costs. Plus, your savings grow tax-free until they’re needed.

And if you’ve got more than one child or grandchild, a Family RESP adds even more flexibility by letting you manage everything in one account. It’s a smart, efficient way to maximize your savings while making sure your kids have the financial support they need for their education. So, what is a Family RESP and how does it work? Let’s break it down.

What is a Family RESP?

Most people open a Registered Education Savings Plan (RESP) to start saving for their child’s college or university expenses. It’s an investment account where your money grows tax-free until it’s withdrawn for school expenses. Many parents set up a separate RESP for each child, but managing multiple accounts can get tricky. That’s where a Family RESP comes in—it lets you save for multiple children in one place.

A Family RESP works differently than an individual RESP. It is a tax-deferred education savings account that allows multiple beneficiaries to share contributions and investment growth. Plus, the government kicks in grants—up to 20% of contributions, with limits based on age and past contributions—helping you maximize savings for your kids’ education.

One of the biggest benefits of a Family RESP is the flexibility to share grants and investment growth among one or more beneficiaries in the family plan RESP. So if one child chooses a shorter or more affordable program, or decides not to pursue post-secondary education at all, you can allocate funds to another who might need additional support for a longer or pricier education. This way, you make the most of your savings and ensure each child gets the funding they need.

Who Can Open a Family RESP?

Generally, a Family RESP is opened by parents or grandparents, though technically, a sibling could open one too—it’s just not very common. The beneficiaries must be related by blood or adoption, so this includes biological and adopted children or grandchildren. Step children also qualify under what’s called “adoption in fact,” meaning they’re recognized as family because of their parent’s marriage or common-law partnership.

To open a Family RESP, the beneficiaries must be your children or grandchildren and related by blood or adoption—and they must be under 21 when added, this includes step-children and step-grandchildren. However, If you want to save for nieces or nephews (a beneficiary’s cousin(s)) they will need an Individual RESP.

Even if you only have one child right now, you can still open a Family RESP—it works just like an Individual RESP until you add more kids later. Since it gives you the flexibility to include more beneficiaries in the future, it’s often the smarter choice over an Individual RESP.

Contribution Limits and Rules for a Family RESP

Each child can have up to $50,000 for their lifetime contribution limit, no matter how many RESPs are opened for them. So, if both a parent and a grandparent set up separate accounts, the combined contributions across all accounts still can’t exceed that $50,000 limit.

When it comes to contributions and government grants, everything is tracked by the child’s SIN (Social Insurance Number). This ensures that if multiple people—like parents and grandparents—open separate RESPs for the same child, the government keeps a running total of contributions and grants to make sure they don’t exceed the limits.

If your child’s RESP contributions go over the $50,000 lifetime contribution limit, you’ll have to pay a 1% tax per month on the extra amount until it’s withdrawn. To avoid penalties, make sure you keep track of all contributions—especially if multiple people (like parents and grandparents) are adding to the RESP.

Government Grants for a Family RESP

Canada Education Savings Grant (CESG)

The Canada Education Savings Grant (CESG) is a great way to boost your child’s RESP—matching up to 20% of the first $2,500 you contribute each year, which means up to $500 in free money annually. To get the full $500 grant each year, you’ll need to contribute $2,500 annually. If you’ve missed a year, don’t worry—you can catch up on past grants by contributing more in a future year to maximize the government’s contribution.

If your family’s income is below a certain threshold, you could qualify for the additional CESG, which adds up to 10 or 20% on your first $500 contribution. Over time, these CESG grants can really add up, but there is a lifetime maximum of $7,200 per child, including the additional CESG. It’s a great incentive to contribute regularly and make the most of your RESP savings.

For 16 and 17 year olds to collect CESG there are specific conditions that need to be met to qualify.

Canada Learning Bond (CLB)

For families with lower incomes, the Canada Learning Bond (CLB) provides up to $2,000 per child—and the best part? No personal contributions are required to receive it. The beneficiary receives $500 in their first year of eligibility, and then $100 each year after until they turn 15—as long as they continue to qualify.

The Canada Learning Bond (CLB) is retroactive, meaning you can still claim it for past eligible years. The primary caregiver can apply for it anytime until the child turns 18, after this, the child can apply, but it must be done prior to their 21st birthday.

Additional Grants

If you live in British Columbia or Quebec, you can get even more. B.C. families can receive an extra $1,200, while Quebec offers up to $3,600 in additional grants. These programs give families even more support to help cover future education costs, making it easier to build savings for post-secondary studies.

Tax-Deferred Earnings and Withdrawal Implications

A Family RESP lets your savings grow tax-free until it’s time to use them for your kids’ education. Because you’re not paying taxes on the investment earnings right away, both your contributions and any government grants can compound over time, helping you build a bigger education fund.

When you withdraw the money for school expenses, the Education Assistance Payments are taxed in your child’s name—and since students typically have low income, the tax hit is minimal. This makes a Family RESP a smart, tax-efficient way to save.

So, the earlier you start saving, the better! Years of tax-free growth can make a huge difference, giving you a strong financial cushion to support your kids’ education.

Using Family RESP Funds for Education

Like with an individual RESP, you can start withdrawing money from your Family RESP as soon as your child finishes high school and is officially enrolled in a qualifying post-secondary program.

The funds can be used for any of your child’s education-related expenses, such as tuition, textbooks, rent, and transportation, whether your child is studying full-time or part-time. This includes programs at:

• Colleges
• Universities
• Trade schools
• Vocational and technical schools
• Religious institutions
• CEGEPs

No matter what path they choose, an RESP can help cover the costs and make post-secondary education more affordable.

How Withdrawals Work in a Family RESP

When it’s time to withdraw money from your Family RESP, it’s important to understand how funds are divided. Withdrawals fall into three categories:

• Your contributions – This is the money you put in. You can use these funds for any of your children when they go to post-secondary school or an eligible apprenticeship program.
• CESG grants from the government – Each child can receive up to $7,200 in Canada Education Savings Grant (CESG) money. This amount can’t be shared among siblings once a child has maxed out their share.
• Investment earnings – These are the returns your RESP investments have made over time. Like the grants, they can be shared among siblings but only within certain limits.

Let’s say you have two children in a Family RESP. Over the years, you’ve contributed $75,000 and received $14,400 in CESG grants. When your oldest child heads to college or university, they can use as much of the $75,000 in contributions as they need. However, they can only access up to $7,200 of the CESG money—plus any investment growth earned on that portion—throughout their time as a full-time student. The remaining $7,200 in grants stays in the RESP for their siblings to use.

How to Withdraw Funds

To withdraw money from a Family RESP, the person who opened the account (usually a parent or grandparent) needs to show proof of enrollment for the student. This means confirming that the beneficiary is officially registered as a full-time or part-time student at a qualifying post-secondary institution. Once that’s done, the subscriber can access the funds to help cover education costs.

When it’s time to withdraw money from a Family RESP, there are two types of withdrawals you need to know about:

Post-Secondary Education (PSE) Withdrawals

These come from the money you contributed to the Family RESP. Since you already paid taxes on this money, you can withdraw it anytime, tax-free.

Education Assistance Payments (EAPs)

These withdrawals come from the government grants (like the CESG and CLB) and any investment earnings in the account. Only the student (beneficiary) can receive EAPs, and they’ll pay tax on them—but since students usually have low income, the tax hit is minimal.

Maximum Family RESP Withdrawal Amount

There’s no limit on how much of your own contributions (PSE withdrawals) you can take out from a Family RESP.

However, for Education Assistance Payments (EAPs)—which include government grants and investment earnings—there’s a limit in the first 13 weeks of school. Students can withdraw up to $8,000 if they’re in full-time studies or $4,000 if they’re part-time.

For students in 2025 the threshold for EAP is $28,881.

Tips for Maximizing Your Family RESP

A Family RESP is a fantastic way to save for your kids’ education, but to make the most of it, you need a solid strategy. Here’s how to maximize your savings and government benefits.

Start Saving Early to Take Full Advantage of Compounding Growth

The earlier you start contributing, the more time your money has to grow tax-free. Thanks to compounding, even small contributions made early on can add up to a significant amount by the time your child reaches post-secondary school. Even if you can’t contribute much at first, starting early gives your investments more time to work for you.

Contribute Regularly to Maximize Government Matching

To get the full Canada Education Savings Grant (CESG) each year, aim to contribute $2,500 per child annually. The government matches 20% of your contributions (up to $500 per year per child), and if your income qualifies, you may also receive the Additional CESG or the Canada Learning Bond (CLB). If you’ve missed contributions in previous years, you can catch up by contributing more in a future year.

Plan for Multiple Children and Educational Needs

One of the biggest benefits of a Family RESP is that you can share funds among siblings. If one child decides not to pursue post-secondary education or gets a scholarship, their share of investment earnings and contributions can be used for another sibling. However, keep in mind that only $7,200 of government grant money can be given to each child.

Keep Track of Contribution Limits and Deadlines

The lifetime contribution limit per child is $50,000, and exceeding it can lead to penalty taxes of 1% per month on the excess amount. Since multiple family members (like parents and grandparents) may contribute, it’s important to track all RESP contributions under the child’s Social Insurance Number (SIN) to avoid going over the limit.