Back-to-School: RESP Strategies That Actually Work

As families prepare for a new school year, backpacks, textbooks, and tuition often takes center stage. While it's easy to focus on today's expenses, many parents and grandparents also use this time of year as an opportunity to review their long-term education savings goals.

A Registered Education Savings Plan (RESP) is one of the primary savings vehicles available to Canadians who wish to set money aside for a child's post-secondary education However, to access the educational assistance and government grants, the beneficiary must enroll in a qualifying post-secondary program. Since not all programs meet RESP eligibility requirements, it is important to confirm eligibility before relying on RESP funds to help finance education costs.

Key eligibility requirements include:

• The institution must be eligible.

• The program must be a qualifying post-secondary program.

• When full-time, the program must last at least  3 consecutive weeks with at least 10 hours per week of courses/work.

• Different rules may apply to part-time studies and foreign educational institutions.

Despite its popularity, many RESP accounts are opened with enthusiasm only to receive little attention in the years that follow. On the other side, some families choose to make it part of their regular financial review rather than thinking about an RESP only during tax season or when a child is nearing graduation

Why Consistency Often Matters More Than Timing

Many people assume that building education savings requires large lump-sum contributions.

In reality, some families prefer a more gradual approach.

Common habits include:

•   Making regular contributions throughout the year.

•   Including education savings in the household budget.

•   Reviewing progress annually rather than waiting until the last minute.

Consistency can make it easier to stay focused on long-term goals, regardless of market conditions or changing priorities.

Understanding Government Incentives

One reason families periodically review their RESP is to better understand the government incentives that may be available.

Am I receiving all the eligible grants?Have contribution terms changed over time ?Have program rules or eligibility requirements been updated ?

Since government programs may change, staying informed can help families better understand the opportunities available to them.

Reviewing Your Investment Approach

As children grow older, the investment horizon naturally becomes shorter. For this reason, some families choose to revisit how their RESP fits within their overall financial plan.

When reviewing an RESP, it may be helpful to consider the child's expected education timeline, your personal comfort with investment risk, and whether the current investment approach continues to align with your long-term objectives. There is no one-size-fits-all strategy, as every family's financial situation, goals, and priorities are unique.

Life Changes Can Affect Your Plan 

Family circumstances evolve over time, and an RESP may occasionally benefit from a review, particularly following significant life changes such as the birth of another child, changes to education goals, or shifts in overall financial priorities.

Regular reviews can help ensure the plan continues to reflect the family's current situation and Back-to-School season Is a Good Time for a Financial Check-In.

In any case, whether an RESP was opened recently or many years ago, this time of year provides a natural opportunity to:

•   Review education savings progress.

•   Confirm that the plan still Aligns with long-term goals.

•   Stay informed about available programs and changing rules.

Small check-ins today can help families remain focused on tomorrow.

The opinions expressed are those of the author and not necessarily those of CI Assante Wealth Management Ltd. This material is provided for general information and the opinions expressed and information provided herein are subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on the information presented, please seek professional financial advice based on your personal circumstances. CI Assante Wealth Management Ltd. is a Member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization