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Marie Alcober
Updated Sep 3, 2026
"What if my child never goes to university?"
It's a fair question.
Career paths aren't as predictable as they once were. Young Canadians are taking a wider range of routes into the workforce, and it can feel impossible to know what post-secondary education will look like by the time today's toddlers graduate.
That uncertainty may be one reason some families put off opening a Registered Education Savings Plan (RESP). In fact, only 53% of eligible Canadian families had opened an RESP account in 2019, according to Statistics Canada.
Many parents don't realize that RESPs are designed to support a wide range of post-secondary pathways. That means families don't need to have their child's education plans figured out before opening an account.
Beyond university: What RESPs actually fund
One of the biggest misconceptions about RESPs is that they're only meant for university students. They're not.
An RESP is a tax-advantaged savings account that helps families save for a child's post-secondary education. Eligible families may also receive government support through programs like the Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB).
RESP funds can be used for many types of eligible post-secondary education and training. Depending on the program, that may include:
- Carpentry, plumbing and electrical apprenticeships, including some that can lead to Red Seal certification
- Nursing programs
- Culinary arts programs
- Heavy equipment operator training
- Some shorter certification and training programs
RESPs can also be used for eligible college, CEGEP and university programs. Generally, the student must be enrolled in a qualifying educational program at a designated post-secondary institution; program length and course-load requirements can vary depending on whether the student is studying full time or part time.
RESP funds are not limited to tuition, either. Depending on the type of education or training and the withdrawal rules that apply, they may help cover education-related expenses such as:
- Tuition and fees
- Books, tools and equipment
- Living expenses such as housing and food
- Transportation
If you're unsure whether a particular school or course qualifies, RESP providers such as Embark can help explain eligibility requirements, review whether a program may qualify and support the withdrawal process when the time comes.
Your child doesn't need to have their future mapped out today for an RESP to be useful. It's about creating opportunities for whatever path they choose later.
Why flexibility matters
If you're a new parent or raising a young family, you may find yourself wondering: What will my child's career look like when they're ready to enter the workforce? Will the path they take after high school look anything like the one previous generations followed?
New technologies, including AI, are changing the way we work. The skills employers need are evolving, and the path from education to a long-term career is becoming less linear.
At the same time, Canada's labour market needs are changing. The Canadian Occupational Projection System — which tracks projected job openings and labour market trends across hundreds of occupations — projects that more than 100 occupations could face shortages by 2033, including many in health, trades, transport and equipment operations.
An RESP isn't designed for one specific career path or education choice. It's designed to support different possibilities, whether your child wants to become an electrician, a lawyer, a hairstylist or a baker.
That flexibility applies to saving, too. Many families begin with small, regular contributions and adjust over time as their financial situation changes. Some parents start with as little as $5 to $10 a week or month, then increase their contributions when they can.
35 years to figure it out
Many parents assume they contribute to an RESP while their child is growing up, then have to use the funds when their child turns 18.
But an RESP can stay open for up to 35 years, and contributions can be made for up to 31 years. That gives families more time to save while leaving room for their child's plans to evolve.
A toddler who loves taking things apart might become an engineer — or an electrician. A teenager who isn't sure what they want to study may take time before choosing a program. Someone who completes one credential may decide later that they want to learn a new skill.
An RESP can adapt alongside those decisions:
- Taking a gap year? The RESP can stay open until your child is ready to continue their education.
- Changing direction? The funds can still be available if they choose a different eligible program later.
- Returning to school years down the road? An RESP may help support that next step.
As Andrew Lo, CEO of Embark, explains: "I've had many parents tell me their child finished their degree, then five years later decided they wanted a nursing diploma and used their leftover RESP money for that."
The value of an RESP is that it lets you support your child’s next step, even when you don’t know what that step will be today.
‘Free money’ regardless of their path
One reason some parents may hesitate to open an RESP is the assumption that government support is only useful for university-bound students.
That's not the case.
Government grants are available for eligible post-secondary education paths, including apprenticeships, skilled trades, colleges and universities. A student pursuing a trade can receive the same RESP grants as a student pursuing another eligible post-secondary program.
The Canada Education Savings Grant (CESG) can add 20 cents for every dollar contributed to an RESP, up to annual and lifetime limits:
- 20% match on RESP contributions
- Up to $500 per year in CESG (on up to $2,500 in annual contributions)
- Up to $7,200 per child over the lifetime of the RESP
Depending on household income, some families may also qualify for the Canada Learning Bond (CLB), which can provide up to $2,000 per child without requiring personal contributions. When you open an RESP account with Embark, the provider can apply for the CLB on your behalf if you are eligible.
Provincial programs may also provide additional support. For example, British Columbia offers an Education Savings Grant of $1,200 for eligible children between the ages of six and nine, and Quebec offers a similar program.
Opening an RESP earlier can give your savings more time to benefit from available government grants.
For example, a family that contributes $2,500 per year from birth until age 17 would contribute $36,250 of their own money and could receive up to $7,200 in CESG (assuming they qualify for the maximum amount), before any investment growth.
What if your child doesn't use the RESP?
Your RESP contributions always belong to you. If your child doesn't pursue an eligible program, you can withdraw your contributions, but government grants generally need to be returned.
Investment earnings may be withdrawn in some circumstances, subject to tax and applicable rules.
RESP providers such as Embark can help explain withdrawal options and answer questions when the time comes.
How to get started
You don't need to know exactly what your child's future will look like before opening an RESP. That's the point — an RESP is designed to give families options as those plans take shape.
You also don't need to start with a large contribution. Many families begin with what fits their budget, then adjust their savings over time as their circumstances change.
RESP providers like Embark can help families understand eligibility rules, available grants and withdrawal options.
Opening an RESP account with Embark takes less than eight minutes.
Marie Alcober
Commercial Content Manager
Marie Alcober is a commercial content manager at Money.ca, where she develops branded content that helps readers make smarter money decisions.
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