RESP and Education Savings for a Grandchild in Kinship Care

When you're raising a grandchild on a pension, education savings feel like a distant luxury. But even small amounts in an RESP can unlock free government grants worth thousands — and for low-income kinship caregivers, the Canada Learning Bond requires no contribution at all.

Who Can Open an RESP

Anyone can open a Registered Education Savings Plan for a child. You don't need to be the child's parent, legal guardian, or have a court order. A grandparent, aunt, uncle, or family friend can open an individual RESP at any bank, credit union, or through a group plan provider.

You need your own Social Insurance Number (SIN) and the child's SIN to register the RESP. For a child under the age of majority, a parent or legal guardian can apply for the child's SIN; a school or doctor's letter alone does not authorize another caregiver to apply.

Canada Education Savings Grant (CESG)

The federal government matches 20% of the first $2,500 you contribute each year — that's up to $500 per year in free money. The lifetime CESG maximum is $7,200 per child.

For families with adjusted family net income under $57,375 (the 2025 income threshold used for the 2026–27 benefit year), the match on the first $500 contributed is higher: 40% total for the lowest-income bracket and 30% total for the next bracket, which ends at $114,750. That means a $500 contribution could attract $200 in grants instead of $100.

For beneficiaries aged 16 or 17, CESG is available only if, before the end of the year they turned 15, either at least $2,000 was contributed to the RESP or at least $100 was contributed in four different years.

If you can contribute even $25 per month ($300 per year), you'll receive at least $60 in CESG annually. Over 15 years, that's $900 in grants on $4,500 in contributions — before any investment growth.

Canada Learning Bond (CLB): No Contribution Required

The Canada Learning Bond is designed specifically for children in low-income families. It deposits $500 into the child's RESP in the first year and $100 each subsequent year the family qualifies, up to a lifetime maximum of $2,000. You don't need to contribute a single dollar of your own money.

Eligibility is income-tested and depends in part on the primary caregiver's adjusted income and the number of children. For the July 2026 to June 2027 benefit year, the income threshold is $58,523 for one to three children and increases with the number of children. If you're a kinship caregiver receiving CCB for the child and your income is within the applicable threshold, the child may qualify.

To get the CLB, you need an RESP opened at a participating financial institution. Some banks charge fees for RESP accounts that can eat into the CLB; look for no-fee RESP options at credit unions or through the Canada Learning Bond referral process.

The CLB can be claimed retroactively for every year the child was eligible, back to 2004 or the child's birth year (whichever is later), up to the $2,000 limit. The beneficiary must be under 21 when the CLB is applied for. If the child has been in your care for several years and you haven't opened an RESP yet, there may be accumulated CLB room waiting.

Practical Considerations for Kinship Caregivers

You don't need a court order to open an RESP. An RESP subscriber doesn't need to be the child's legal guardian, but the subscriber and beneficiary need SINs to register the plan.

Contributions don't affect your benefits. RESP contributions don't reduce your GIS, OAS, or CCB. The money is in the child's plan, not counted as your income.

What if the child doesn't go to post-secondary? If the child doesn't attend a qualifying program, the CESG and CLB generally must be returned to the government. Your contributions can be paid back tax-free. Earnings may be paid to the subscriber only under accumulated income payment rules and are taxed as income plus an additional 20% tax (12% in Quebec). You can also transfer the education savings to another beneficiary — for example, another grandchild.

Start with the CLB. If you can't afford contributions, open a no-fee RESP and apply for the Canada Learning Bond. It's entirely free money for the child's education, and the only cost is the time to open the account.

Getting Started

1. If you aren't the child's parent or legal guardian, ask the parent or legal guardian to apply for the child's SIN
2. Open a no-fee RESP at your bank or credit union
3. Apply for the Canada Learning Bond (your bank can help)
4. Contribute what you can — even $10 or $25 per month attracts the CESG match

The Nova Scotia kinship financial help guide covers RESP alongside all the immediate financial supports available — because building for the child's future shouldn't wait until the present emergency is over.

See more Nova Scotia guides →