Saving for your child’s education is one of the most important long-term financial decisions you can make as a parent. With the rising cost of university and college in Canada, many expecting parents want to get a head start on building an education fund. This leads to one very common question: “Can I open an RESP before my child is born?”
The short answer is no—you cannot legally open a Registered Education Savings Plan (RESP) before your baby is born. However, this does not mean you cannot start preparing or saving early. In fact, there are several smart steps you can take before birth that put you in a stronger financial position once your child arrives
What Is an RESP and Why Is It Important?
A Registered Education Savings Plan (RESP) is a government-registered investment account created specifically to help parents and guardians save for a child’s post-secondary education. RESPs offer a combination of tax advantages, investment growth, and government contributions—making it one of the most powerful long-term savings tools available in Canada.
Key benefits of an RESP include:
● Tax-sheltered investment growth
Money inside an RESP grows tax-deferred. This means interest, dividends, and capital gains accumulate without taxation until they’re withdrawn for education.
● Government education grants
The Canadian government contributes free money through programs like the Canada Education Savings Grant (CESG) and, for eligible families, the Canada Learning Bond (CLB).
● Flexible education options
RESP funds can be used for many types of post-secondary programs, including:
- University
- College
- Trade schools
- Apprenticeships
- Part-time or full-time studies
- Many approved international institutions
● Low taxes on withdrawals
Educational Assistance Payments (EAPs), which include investment growth and grant money, are taxed in your child’s name—not yours. Since students usually have low or no income, taxes are minimal.
For all of these reasons, many parents want to start as early as possible. But when exactly can you open an RESP?
Can You Open an RESP Before Your Child Is Born?
No, You Cannot open an RESP Before Birth.
It is not legally possible to open an RESP for an unborn child. The Canadian government requires certain identifying information for the beneficiary—the child receiving the funds—and that information is only available after birth.
The key requirement: A Social Insurance Number (SIN)
To open an RESP, your child must have:
- A legal full name
- A date of birth
- A valid Social Insurance Number (SIN)
Since a SIN can only be issued after birth, opening an RESP during pregnancy is not allowed.
Why Parents Want to Open an RESP Early
Even though RESP rules prevent early registration, many expecting parents still feel the desire to start early. This is completely understandable, especially when you consider:
● Education costs in Canada continue to rise
University tuition and living expenses can exceed $80,000–$120,000 for a four-year degree.
● Early contributions benefit from compound growth
The earlier you invest, the longer your money grows tax-sheltered.
● More time means more government grants
The CESG matches 20% of your yearly contributions—so the earlier you start contributing after birth, the faster you reach the $7,200 lifetime maximum.
● Parents want to reduce future financial pressure
Saving gradually over 18 years is much easier than trying to come up with the money all at once when your child graduates high school.
While you cannot officially open the account, you can begin preparing in advance.
What You CAN Do Before Your Baby Is Born
Even though an RESP cannot be opened yet, there are several steps parents can—and should—take to get a head start.
1. Save Money in a Temporary Account
One of the smartest strategies is to begin setting aside money in another account during pregnancy. You can save in:
- A high-interest savings account (HISA)
- A Tax-Free Savings Account (TFSA)
- A regular investment account
When your child is born and their RESP opens, you can transfer these funds instantly.
Why this helps:
- You don’t lose valuable time.
- Your savings may earn interest before the RESP opens.
- You can contribute a lump sum right away and qualify for larger grant payments.
Even saving $50, $100, or $200 per month during pregnancy can accumulate nicely by the time your baby arrives.
2. Decide Which Type of RESP You Will Open
There are three types of RESPs available.
● Individual RESP
- Only one beneficiary
- Anyone can open it (parent, grandparent, etc.)
- Most flexible and popular option
● Family RESP
- Can include multiple children
- Beneficiaries must be related by blood or adoption.
- Ideal for parents planning more than one child
● Group RESP
- Contributions are pooled with those of many other families.
- More restrictive rules
- Often higher fees
Most parents prefer individual or family RESPs because they offer greater control and fewer restrictions.
3. Compare RESP Providers Early
Different financial institutions offer different fee structures, investment options, and grant application processes. Research RESP providers before your child is born so you’re ready to act quickly later.
Evaluate providers based on:
- Fees and management costs
- Available investment products (ETFs, mutual funds, GICs, etc.)
- Customer service and user experience
- Automatic grant application handling
- Contribution flexibility
- Long-term performance of managed portfolios
Knowing which provider you want ahead of time eliminates delays after your baby’s birth.
4. Understand Government Grants and Eligibility Rules
The Canadian government offers generous incentives to families who open an RESP.
a. Canada Education Savings Grant (CESG)
- 20% match on contributions
- Up to $500 per year
- Lifetime maximum $7,200 per child
b. Additional CESG
For low- to middle-income families
- Extra 10–20% match
- Up to $100 extra per year
c. Canada Learning Bond (CLB)
For eligible low-income families
- Up to $2,000
- No contributions required
Learning how these programs work in advance ensures you never miss out on free government money.
What to Do Once Your Baby Is Born: Step-by-Step
Once your child arrives, you can open the RESP almost immediately by following these steps.
Step 1: Apply for Your Child’s SIN
This is the most important step. A SIN is required to register an RESP with the federal government.
You can apply:
- At the hospital, when registering the birth
- Online through Service Canada
- In person at a Service Canada office
Most parents receive their child’s SIN within a few weeks.
Step 2: Choose and Contact Your RESP Provider
Since you already researched your options during pregnancy, you can now move forward confidently with:
- A bank
- A credit union
- A robo-advisor
- An investment company
The provider will walk you through the setup process.
Step 3: Pick Your Investment Portfolio
RESPs can include various investment products, depending on your risk tolerance and time horizon.
Popular RESP investment choices include:
- Mutual funds
- ETFs
- GICs
- Balanced portfolios
- Target-date education funds
- Automated robo-advisor portfolios
Since you have 17–18 years before withdrawals begin, many parents choose growth-oriented portfolios in the early years.
Step 4: Make Your First Contribution
You can start with any amount—even $25. What matters most is consistency.
Options include:
- Monthly automatic contributions
- Annual lump-sum contributions
- A mix of both
Your first contribution will also trigger the request for government grants.
Step 5: Apply for CESG and CLB (Your Provider Does This Automatically)
You do not need to fill out separate forms for government grants—your RESP provider handles this for you.
Why Starting Early Matters (Even If You Can’t Start Before Birth)
The earlier you begin contributing, the more time your RESP has to grow.
Example: Starting at Birth vs. Age 5
Start at Birth
- $2,500/year
- 6% growth
- 18 years
Final amount: $95,000–$105,000
Start at Age 5
- Same contribution
- Only 13 years of growth
Final amount: $55,000–$60,000
Starting early could mean over $40,000 more for your child’s education.
How to Maximize Your RESP After It’s Open
Here are expert strategies to help parents get the most from their RESP
1. Contribute $2,500 per Year When Possible
This guarantees the full $500 CESG annually.
2. Automate Monthly Contributions
Automatic deposits build discipline and long-term consistency.
3. Review Your Portfolio Every Year
As your child gets older, gradually shifting to safer investments protects your savings.
4. Encourage Family Members to Contribute
Grandparents, godparents, and relatives can all contribute to your child’s RESP.
5. Use Catch-Up CESG Room
If you miss a year, you can still catch up later and receive up to $1,000 CESG in a single year.
Final Thoughts: You Can’t Open an RESP Before Birth—but You Can Prepare Early
While you cannot open an RESP before your child is born, early planning still makes a major difference. By saving money during pregnancy, researching RESP types, choosing a provider, and understanding government grants, you will be fully prepared to open the account as soon as your baby arrives.
The earlier you start saving—even if it is not before birth—the more your child will benefit from government grants, tax advantages, and decades of compound growth. An RESP remains one of the smartest financial tools available to Canadian parents, helping secure your child’s academic and financial future long before their first day of school. Contact us for more information.