RESP for Grandparents Raising a Grandchild in Ontario

A Grandchild's Education Fund Does Not Affect Your Benefits

One of the first questions grandparents and other relative caregivers in Ontario ask once the immediate crisis settles is whether they can start saving for the child's education. The good news: Registered Education Savings Plans (RESPs) are one of the few financial tools that work entirely in your favour as a kinship caregiver. RESP contributions are explicitly exempt under Ontario Works Directive 3.10, meaning they do not count as the child's assets for Temporary Care Assistance (TCA) purposes. The $500 child asset limit that governs TCA eligibility ignores RESP balances completely.

That means you can open an RESP, contribute to it, and receive government grants — all while continuing to receive TCA, the Canada Child Benefit (CCB), and the Ontario Child Benefit (OCB) without any clawback or reduction.

How to Open an RESP as a Non-Parent Caregiver

Any adult can open an RESP and name a child as the beneficiary. You do not need to be the child's legal parent. A grandparent, aunt, uncle, or older sibling with a valid Social Insurance Number (SIN) can open either an individual RESP (one beneficiary) or a family RESP (multiple related beneficiaries) through an RESP promoter, such as a bank or credit union.

What you need to bring:

• Your SIN and government-issued ID
• The child's SIN (required to name the child as beneficiary; for a child under the age of majority, Service Canada directs a parent or legal guardian to apply on the child's behalf)
• The child's birth certificate

Receiving the Canada Child Benefit for the child is not a prerequisite for opening an RESP. The RESP is a contract between you (the subscriber) and the plan provider, not a benefit that flows from custody or CCB status.

The Canada Education Savings Grant (CESG)

The federal government matches eligible RESP contributions at 20% on the first $2,500 contributed each year, up to $500 per year in Canada Education Savings Grant (CESG) money. Over a child's lifetime the maximum CESG is $7,200. For families with adjusted family net income under $58,523 in 2026, an additional 20% applies to the first $500 contributed; for income from $58,523 to $117,045, an additional 10% applies. That makes the total match on the first $500 up to 40% or 30%, respectively, subject to eligibility — so even a $25 monthly contribution can qualify for grant money for an eligible child.

The Canada Learning Bond (CLB) adds up to $2,000 for eligible children from low-income families, with no personal contribution required. It provides $500 for the first eligible year and $100 for each later eligible year, up to age 15. Eligibility depends on family income, the primary caregiver's CCB eligibility, and tax filings. The CLB is retroactive for eligible years and can be requested through the RESP promoter.

TCA, CCB, and RESP: No Conflict

Here is how the programs interact for a kinship caregiver in Ontario:

• TCA: A child's RESP is exempt as an asset under Directive 3.10, so it does not count toward the child's $500 asset limit. Directive 5.1 also exempts RESP contributions, interest reinvested in the plan, and RESP payments or withdrawals as the child's income.
• CCB/OCB: These are calculated on your adjusted family net income (AFNI), not on RESP balances. Contributing to an RESP does not reduce your CCB or OCB payments. In fact, if your income is low enough, the RESP's CLB and enhanced CESG provide additional education money at no cost to you.
• RDSP: If the child has a disability and qualifies for the Disability Tax Credit (DTC), you can also open a Registered Disability Savings Plan. A child's RDSP is exempt as an asset under Directive 3.10; contributions, reinvested interest, and payments or withdrawals are treated under separate income exemptions.

Practical Steps

1. Get the child's SIN if they do not have one — for a child under the age of majority, Service Canada directs a parent or legal guardian to apply. If you are another relative caregiver, confirm with Service Canada what authority and documents you need before applying on the child's behalf.
2. Choose a plan provider — banks, credit unions, and scholarship plan dealers all offer RESPs. A self-directed individual RESP gives you the most flexibility over investment choices.
3. Start small — even $25 per month can qualify for the basic 20% CESG match for an eligible child. The CLB requires no contribution, but an RESP must be open.
4. Apply for the CLB — ask the RESP promoter to request it. Retroactive CLB entitlement is available for each eligible year, subject to the program rules.

RESP contributions remain under the subscriber's control and may be returned to the subscriber tax-free, subject to the plan's terms. Government grants and investment earnings can be paid to the beneficiary as Educational Assistance Payments (EAPs) while they attend an eligible post-secondary program, such as a college, university, trade school, or apprenticeship.

Planning Ahead While Handling Today

Kinship care often starts in a crisis, and education savings feel like a luxury. But for relatives already receiving TCA and CCB, the RESP is a protected, grant-matched tool that can work with very small contributions. The government grants alone can put thousands of dollars toward the child's future without changing the TCA asset assessment or the CCB and OCB income calculation.

Our Ontario Kinship Financial Help Guide maps every payment a relative caregiver can claim — TCA, CCB, OCB, ACSD, and CAS kinship service supports — so you know exactly what is available before you sit down with a caseworker.

See more Ontario guides →