How To Talk To Your Kids About RESPs

You've opened an education savings account for your kid, and now that they're in school, you may wonder how and when to talk about it. Will your child feel entitled if they know you're already saving for college, university or trade school? If you don't talk about it, will they be left wondering about their future?

In a recent Greenlight survey, parents reported that financial literacy is the most difficult life skill to teach their children, ranked even higher than safety. Talking about money is easier when tackling it with transparency. Opening up about your savings plan is a powerful way to build trust, reduce financial stress, and raise money-smart kids who know how to plan, not just spend.

Here's how to talk about saving for school at different ages, how to frame parental contributions while encouraging responsibility and how to help kids build real-world financial skills.

Know your options

In Canada, a Registered Education Savings Plan (RESP) is a tax-advantaged way to save for education after high school. Through grants, the government matches family deposits in the RESP up to a certain percentage and a total cap. The earnings on contributions grow tax-deferred until the money is withdrawn to pay for education—whether it’s college, trade school, apprenticeships or other eligible paths.

Understand the details

By knowing the rules of education savings plans upfront, you can avoid any potential surprises. Get clear on tax implications, contribution limits, qualified expenses, and also the penalties or additional taxes owed if the funds aren’t used for higher education. For example, investment earnings that are withdrawn from a RESP but not used for education-related expenses will incur income tax and an additional 20 percent penalty.

Prep first, then share the plan

Look at the big picture before talking to your child. Consider your child’s interests and long-term goals. Review your existing savings and estimate what you can realistically contribute until they graduate from high school without causing excessive financial strain.

Greenlight’s survey found that money is the #1 stressor for working parents, with 70 percent reporting financial anxiety on a weekly basis. While parents may want to provide as much money as possible for their child’s education, it’s important to avoid sacrificing too much from their emergency savings or retirement contributions. That could lead to a setback facing the whole family in the future.

Match the message to their age

• Ages 5–8: Plant the seed
  Keep it fun and simple. Connect their favourite “grown-up jobs” to the schooling it takes, and show how setting aside even a little bit of birthday or allowance money is “investing in future-you.”

• Ages 9–11: Build habits
  Start showing them how your RESP grows over time, like a progress bar in a game. They can practice saving a percentage of their allowance or gift money.

• Ages 12–14: Add real costs
  Share real-world examples: tuition numbers, textbooks, or what residence vs. commuting might cost. Compare a trade school program with university fees so they see options, not just one default path.

• Ages 15–18: Share responsibility
  Talk openly about what portion of costs you’ll cover and where they can step in—part-time jobs, scholarships or grants. This is also the time to talk about student loans, repayment and budgeting.

Foster responsibility and teamwork

Frame your savings as one part of the broader plan, and empower your kids to explore multiple sources of funding, such as scholarships, financial aid, grants, or summer and part-time jobs.

Clearly outline what your contributions will be compared to the total cost, and discuss ways to bridge any gaps—whether it’s considering more affordable options or living at home to save on housing. If your family savings will fully cover their costs, consider something they can be responsible for to provide a sense of ownership. When paying at least some of the costs of college, teens can learn responsibility and appreciate the value of their education.

Use the conversation as a launchpad

Leverage this moment to introduce budgeting, saving and compound growth. For a firsthand look at how investments can grow, involve your child in tracking education savings plan balances.

If student loans are being considered, it’s an opportunity to talk about debt and credit. Help them consider the total cost of the loan, including interest, and understand the repayment schedule, such as how much the monthly bills will cost and when they begin.

Keep the money talks going

Revisit the topic regularly as your child grows, treating financial education as an ongoing dialogue, not a one-time chat. Make it routine to check in on finances and savings goals. Celebrate milestones, such as reaching a goal, and also recognize when it’s a good time to reassess the plans with changes in circumstances.

No matter how much you’re saving for your child’s future, the financial conversations you have with them now may be even more powerful. A positive approach will focus on progress, not pressure. By starting early and talking openly, parents can help raise a generation that’s confident and capable when it comes to managing their own money.