Canadians are feeling the pressure of a rising cost of living, and many parents believe they can’t afford to prioritize saving for their children’s education. Still, most want to help their kids with future schooling costs, which creates a difficult trade-off for many households.
With competing expenses such as housing, groceries and transportation, contributing regularly to a registered education savings plan (RESP)—and especially contributing enough to capture the full $7,200 available through the Canada Education Savings Grant (CESG)—is out of reach for many families. That doesn’t mean an RESP isn’t worthwhile. Even modest, irregular contributions can grow over time and help reduce the need for student debt down the road.
Here are six practical ways to find small amounts to invest in an RESP without putting major strain on your monthly budget. These approaches can help families of any income level begin saving for post-secondary education.
1. Reinvest government benefits
Many Canadian families receive the Canada Child Benefit (CCB) each month. If your household budget allows it, consider directing part or all of the CCB into an RESP as a monthly or occasional contribution instead of spending it on non-essential items. Other government payments—like occasional climate-related rebates, provincial benefits such as the Ontario Trillium Benefit (OTB), and GST/HST credits—can also be used to top up an RESP when they arrive.
2. Use bonuses and unexpected money
Unexpected cash—tax-free bonuses, work incentives, or money returned by friends—represents a great chance to add to an RESP. If you don’t need those funds for immediate expenses, directing a portion to your child’s education account turns a windfall into a long-term investment.
3. Ask for RESP contributions as gifts
If your child receives lots of toys and gifts, consider asking family and friends to contribute to their RESP instead. This works especially well when kids are young and don’t have specific gift requests. A polite, advance conversation about gift ideas can help relatives understand the long-term benefit of RESP contributions and give your child a head start on post-secondary savings.
4. Resell outgrown children’s items
Hand-me-downs are valuable, but when you have items no one in your personal circle can use, reselling is a practical option. Selling gently used baby gear, clothes and toys through local consignment stores, second-hand children’s shops or online platforms lets you recoup some costs. Proceeds from these sales can be redirected into an RESP. Be mindful not to sell recalled or potentially unsafe products.
5. Declutter and sell items you no longer need
Decluttering helps your mental wellbeing and can also generate extra cash. Many household items you no longer use still have resale value. Listing items on local marketplaces, resale apps, or holding a garage sale can raise funds that you can put into an RESP. This approach clears space at home and helps build savings for education.
6. Reinvest tax refunds
Tax refunds often feel like a bonus because they are unpredictable until you file. If you receive a refund and don’t need it for immediate expenses, consider putting a portion into your child’s RESP. Even a modest annual contribution can add up over time and may help you capture government grants.
Finding extra funds for an RESP—it’s possible
Is an RESP worth opening if you can’t contribute regularly or up to the lifetime maximum of $50,000 per child? Yes. You don’t need a high income to start an RESP, and contributions don’t have to be large or perfectly consistent to be beneficial. Your financial situation will change, and you may be able to increase savings later. Meanwhile, the ideas above offer realistic ways to begin building education savings without derailing your monthly budget.
Opening an RESP can be especially valuable for low-income families. The Canada Learning Bond (CLB) can add up to $2,000 to an RESP for qualifying families, and no personal contributions are required to receive that benefit. For flexibility, look for a brokerage or RESP provider that has no minimum deposit and no mandatory contribution schedule.
If you want guidance tailored to your family’s circumstances, consider speaking with a financial professional who can help you choose the right RESP options and savings strategy.
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Read more about RESPs:
- How do RESPs work, and what’s the best way to fund them?
- The top 5 questions about RESPs
- Is an RESP worth it? Yes, even if only for the government grants
- What can an RESP be used for?