5 tips to help you save for your child’s future

Imagine this: you’ve just had a baby. You’re filled with joy and excitement for what’s ahead, but then reality sets in, and you remember that you need to start saving for your child’s future while managing the very real costs of raising a child today.

According to Statistics Canada, the average cost of raising a child over 17 years is about $293,000. This includes tuition fees for a four‑year university degree, which were more than $30,000 for Canadian students in 2025, as well as other costs to consider over the years, like extracurricular activities, tutoring, travel, and health-related expenses.

It’s important to remember that this is just an average, and many costs are difficult to predict or plan for in advance.

The most important thing to remember is that the earlier you start, the more time your money has to grow through compound interest and government support. Even small, regular contributions can add up over 18 years without requiring any major lifestyle changes.  

Below are five simple steps you can take to start saving for your child’s future. If you still feel overwhelmed by the end, that’s okay. A financial advisor can help you open the right accounts and make the most of the programs available to parents.

If you haven’t already, opening an RESP is a strong first step for saving for your child’s education.

Many families choose RESPs because of the Canada Education Savings Grant (CESG). When you contribute to an RESP, the government adds 20% of what you put in, and over time, these additional contributions can significantly increase your overall savings.

It may be useful to know that there's a lifetime limit per child, but you can add more than one child to the same plan as long as they’re Canadian residents with a valid Social Insurance Number.

The Canada Child Benefit (CCB) is a tax-free monthly payment designed to help families cover the cost of raising children.

Rather than using the full amount for day-to-day expenses, some families choose to set up automatic transfers into their child’s RESP on the same day the CCB is deposited. This approach allows you to save before the money becomes part of your everyday budget.

If you’re able to treat the CCB, or even a portion of it, as a savings-first payment, you can build a financial cushion for your child without feeling added pressure on your monthly spending.

Beyond the CESG, there are other government programs that can help grow your child’s education savings. These include:

• Canada Learning Bond (CLB): If your family receives the Canada Child Benefit and meets certain income thresholds, the government may deposit $500 into your child’s RESP when it's opened. No contribution is required from you. Additional payments of $100 may be added each year until your child turns 15, up to a maximum of $2,000.
• Provincial grants: Some provinces offer extra incentives for RESP savings, including:
  • Quebec: The Quebec Education Savings Incentive (QESI), which adds 10% on the first $2,500 you contribute each year
  • British Columbia: The BC Training and Education Savings Grant, which offers a one-time $1,200 grant when your child turns six

Check your eligibility for these programs and make sure your RESP provider has applied for all the grants available to you. The more you can get from grants, the less you’ll have to put in from your own pocket. 

An in-trust-for (ITF) account is a savings or investment account that you manage on your child’s behalf. Once your child reaches the age of majority in your province, they can use the funds for whatever they need.

Some families use ITF accounts to save for goals outside of school, such as travel, a first car, or other long-term expenses. However, ITF accounts don’t offer government grants and come with legal and tax considerations, so it might be helpful to speak with a financial advisor or your financial institution to determine whether an ITF account fits your family’s needs.

Many childcare-related costs, like daycare or after-school programs, can be deducted from your taxable income. While there are limits and rules around what can be claimed, these deductions can still help you save money on taxes.

If you do receive a tax refund for these expenses, one option is to redirect that money into your child’s RESP to increase government matching. Another option is to add it to a separate savings account dedicated to your child’s future. Either approach lets you grow your savings without changing your everyday budget. 

As you can see, there are many programs and tools available to help parents save for their child’s future. Once the essentials are set up, managing your savings becomes a whole lot easier.

If it still feels overwhelming, a financial advisor can help guide you through the process. They can work with you to set things up and create a savings plan that fits your needs, so you can focus less on what’s ahead and more on enjoying this special new chapter in your life.