RESPs are all about the free grant money that the government kicks in when you contribute to your child’s RESP. They pitch in up to 20% of whatever you contributed and, if you qualify for the Additional CESG or Canada Learning Bond, they pitch in even more. The maximum grant you can receive throughout the entire lifespan of your RESP is $7,200 per child and the maximum you can receive per year is $500, or $600 if you qualify for the Additional CESG. So, some simple math shows that if you contribute $2,500/year for approximately 15 years, you will maximize your grant money.
$2,500 x 20% = $500
$500 x 14.4 years = $7,200
Considering that most kids go to post-secondary school in the year they turn 18, that should tell you that it’s definitely best to start contributing when your child is really young.