It’s back-to-school season here in Nova Scotia, new backpacks, sharpened pencils, and maybe a sigh of relief for parents. But this time of year, is also the perfect reminder to think about something bigger than this school year: how to pay for your child’s education down the road.

With tuition fees rising steadily across Canada (the average undergraduate tuition was about $7,076 in 2023–24), even a few years of post-secondary can add up quickly. That’s where a Registered Education Savings Plan (RESP) comes in.

What’s a RESP Anyway?

Think of a RESP as a special savings account that’s designed just for your child’s future education. You can put money in, invest it, and let it grow tax-free until your child is ready to use it for university, college, trade school, or even certain international programs.

The real kicker? The government chips in too. That’s where the RESP really shines.

The CESG and CLB

Here’s where it gets exciting:

• The Canada Education Savings Grant (CESG) adds 20% to your contributions, up to $500 per year (on $2,500 of contributions). Over your child’s lifetime, that’s a maximum of $7,200 in free money.
• Families with lower incomes may get even more, up to 40% on the first $500 contributed each year.
• Plus, if you qualify, the Canada Learning Bond (CLB) provides up to $2,000 per child, with no contribution required.

In short: if you’re not using a RESP, you’re literally leaving free money on the table.

Why Nova Scotians Should Pay Attention

Here in Nova Scotia, fewer families are taking full advantage of RESPs compared to the national average. According to federal data, the average RESP contribution in Nova Scotia was about $1,596 in 2024, and only 43% of kids received the CESG.

That means more than half of children in the province are missing out on thousands of dollars in grants—money that could make post-secondary education much more affordable.

 A Quick Example: How It All Adds Up

Let’s say you start a RESP for your newborn and put in $200 a month:

• That’s $2,400 per year.
• The government adds $480 (20%).
• Over 18 years, you’ve contributed about $43,200.
• With grants, that grows to around $51,840 before investment growth.

Now imagine those funds invested in a balanced portfolio. By the time your child heads to university, the RESP could be worth $70,000–$80,000 or more. Enough to cover tuition, books, and even some living expenses.

 RESP Tips for Parents

• Start early. The earlier you contribute, the more time your money (and grants) have to grow.
• Aim for $2,500 a year per child. That maximizes the $500 annual CESG.
• Don’t worry if you can’t max it out. Unused grant room carries forward, so you can catch up later.
• Check your eligibility for the CLB. Even if you can’t contribute much, your child may still receive up to $2,000.
• Plan for flexibility. If your child doesn’t go to university, the RESP can be used for college, trade school, or certain programs abroad. And if no education is pursued, funds can often be rolled into an RRSP (with conditions) so your savings don’t go to waste.

 Final Thoughts

Back-to-school season is all about giving kids the tools they need to succeed today. But a RESP is about giving them the financial freedom to succeed tomorrow. For many families, education is one of the biggest investments they’ll ever make. With a little planning, and some help from Ottawa, you can turn that investment into an opportunity that supports your child and keeps your own financial goals on track. So, as you check off the school supply list this September, consider adding one more item: opening or topping up your child’s RESP. It might just be the smartest back-to-school decision you make.