09/05/2026
🎓 Back-to-School Season Means RESP Withdrawal Season
One of my favourite conversations each year happens around this time.
As students head off to college, university, trades programs, and other post-secondary education, many families begin making withdrawals from the RESPs they've been diligently contributing to for years. It's incredibly rewarding to see parents and grandparents realize that all those contributions, government grants, and years of disciplined saving are now helping make their child's next chapter possible.
There's often a sense of relief and pride. Relief that education costs won't create the same financial strain they may have experienced, and pride in knowing they planned ahead and created opportunities for their children.
When it comes to RESP withdrawals, I often recommend families start by withdrawing the Educational Assistance Payments (EAPs) first. These withdrawals consist of government grants and investment growth and are taxed in the student's hands. Since most students have relatively low income during their school years, they can often receive these funds with little to no tax owing. Contributions can then be withdrawn tax-free by the subscriber whenever needed.
What continues to surprise me is how many families are still missing out on available government incentives.
The Canada Education Savings Grant (CESG) provides a 20% grant on annual contributions, and families who have fallen behind may be able to catch up on unused grant room. Here in British Columbia, many families are also unaware of the B.C. Training and Education Savings Grant (BCTESG), which provides a one-time $1,200 contribution to eligible children's RESPs.
These grants represent some of the best risk-free returns available. Yet every year I meet parents who didn't know they existed or who missed deadlines to apply.
If you have children, grandchildren, nieces, or nephews who may pursue post-secondary education, it's worth reviewing whether you are maximizing the grants available and ensuring your withdrawal strategy is as tax-efficient as possible.
There are few things more satisfying than watching years of planning turn into real opportunities for the next generation.
Is saving for your child’s education still worth it? The research say yes By Peter Lewis, MoneySense • August 2026 • Investing In spite of uncertainties in the workplace, a post-secondary education is still the best route to a financially sound and rewarding future. Parents today are tasked wi...
