When my first child arrived in early 2011, I wanted to open a registered education savings plan (RESP) as soon as possible. My husband didn’t have student loans, but I had finished university with more than $40,000 on a line of credit — a heavy burden I carried into our marriage a year later.
Having lived with that stress, I was determined to give our children a smoother post-secondary experience and a stronger financial foundation. A few weeks after our daughter was born, my husband and I went to our bank with the baby wrapped to my chest. We opened a family RESP, set up automatic contributions from our joint account, and felt reassured we were doing the right thing for our child’s future.
Years later we have two teenagers and a family RESP with a healthy balance — but I also have regrets and no access to those funds. Below I explain why that happened and outline what you should know before opening an RESP for your child.
RESPs 101
Before you open an RESP for your child, it helps to understand a few key terms. The language around RESPs can be confusing, so here are the basics:
- Subscriber: The adult or adults who open the RESP, make contributions, choose investments and set the account’s risk profile. Parents are commonly subscribers, but other adult relatives can also be subscribers.
- Primary caregiver: The person who receives the Canada Child Benefit (CCB) and is considered primarily responsible for the child’s care and education. For administrative purposes, this often defaults to the mother, though it can be changed with the proper paperwork.
- Beneficiary: The child (or children) who will receive the RESP funds if conditions are met, such as enrollment in an eligible post-secondary program.
- Promoter: The financial institution that administers the account — a bank, credit union or investment firm.
It’s important to note that an RESP requires the child’s Social Insurance Number to open. If more than one RESP is opened for the same child, the primary caregiver designation stays the same across all accounts because government grants such as the Canada Education Savings Grant (CESG) are tied to the child and the caregiver. That means multiple accounts do not multiply the government grant available to the same child.
The risks of misinformation or bad advice
When we set up our kids’ RESP, we didn’t fully understand how many options existed. After refusing contact from a private RESP firm shortly after my daughter was born, we met with an advisor at our bank, where we already had savings and retirement accounts. In that appointment my husband was named the RESP subscriber and I was listed as the primary caregiver — a choice I accepted without appreciating the legal differences between those roles.
At the branch we were told one parent would be the subscriber and the other would be recorded as the primary caregiver. When we asked if both of us could be subscribers, we were told no. Because I received the Canada Child Benefit, the primary caregiver role defaulted to me; my husband, as the higher earner, became the subscriber. Since the money was for our children and my name was on the paperwork, I assumed we shared control — an assumption that proved mistaken.
As the primary caregiver named on the account, I cannot access or manage the RESP. I can’t view the balance, make contributions, direct investments, or control withdrawals. Those authorities rest with the subscriber. Thankfully my marriage remains stable, but if circumstances changed, my husband would be the person with control over more than $100,000 we invested together.
Financial planners warn that this dynamic can create a power imbalance. Not all institutions offer joint-subscriber RESPs, and some only make that option available through specific channels such as direct investing or securities advisors. If that joint option isn’t explained or offered during the account opening, couples can end up with one partner holding sole control by default.
How to protect yourself while investing in your kids’ future
There’s no single reason why some institutions default to sole-subscriber accounts; it may be administration simplicity, or it may reflect long-standing practices that unintentionally favor one parent. Whatever the cause, these defaults can create real risks. If a sole-subscriber parent becomes bankrupt, dies, or acts dishonestly, the RESP can be exposed. The subscriber may also withdraw funds for other purposes, which could result in tax consequences and the loss of government grant amounts.
To reduce risk, ask banks and advisors directly whether they allow joint subscribers and how account control and access are handled. Make sure you understand any contract terms — such as minimum monthly contributions, withdrawal restrictions, or whether the firm is protected under investor protection programs — before signing anything. If you’re approached in the hospital or shortly after giving birth, take time to read the fine print and discuss it with your partner before making a decision.
Slow down, ask questions, and take your time
An RESP is an excellent vehicle for saving for education — especially because government grants can boost contributions — but it should be set up to ensure transparency and fair access for both parents. New parents are vulnerable to pressure and quick decisions, particularly when institutions contact families through hospital partnerships in the hours or days after a birth. You don’t need to decide immediately; it’s often better to wait until you’ve had time to research options and talk through roles and responsibilities with your partner.
There’s no requirement to manage every financial detail jointly day to day, but both partners should have the right to be involved. Knowing how the account is controlled, how contributions are made, and who can make investment decisions matters. Insist on clarity from your financial institution about whether joint subscribers are permitted and how that process works, and only proceed when you feel confident the RESP reflects your shared intentions for your child’s education.
Read more about RESPs:
- You opened an RESP — now what?
- How do RESPs work, and what’s the best way to fund them?
- Reducing risk in an RESP: How to invest as your kid approaches college or university