A Registered Education Savings Plan is a Canadian account designed to save for a child's post-secondary education. Contributions are not deductible, but investment growth is tax-deferred, and the federal government adds matching grants on your contributions.
Canada Education Savings Grant (CESG): the federal government matches 20% of your annual contributions, up to $500 per year per child, with a lifetime cap of $7,200 per child. Lower-income families can receive additional matching of up to 40%.
Contribution limits: no annual limit, but the lifetime contribution cap is $50,000 per child. Contributions made in excess of this attract a 1%/month over-contribution penalty.
How withdrawals work: when the child enrolls in a qualifying program, you initiate an Educational Assistance Payment (EAP) which combines investment income and grants. The student is the taxable recipient — usually a student in a low bracket pays minimal tax. Your original contributions can be withdrawn tax-free at any time (they were already after-tax dollars).
What happens if the child doesn't go to post-secondary: complicated. You can transfer up to $50,000 of investment growth to your or your spouse's RRSP (if you have room). Government grants are returned. There are time limits — typically 36 years from RESP opening.
Individual vs Family RESP: family RESPs let you share grants across multiple children, useful if you don't know which one will need the most. Individual RESPs are simpler but rigid.