Invest the Maximum - Invest it Early

A contribution of $2,000 in an RESP invested at the beginning of each year for 18 years and growing at an average annual compounding rate of return of 10% grows to over $100,000 at a cost to you of $36,000. With an additional $7,200 in CESGs, the total value grows to almost $120,000.

Invest Regularly

Not everyone can afford to invest a lump sum at the beginning of the year. An alternative is to make regular monthly contributions. For example, if you contributed $100 monthly to your child's RESP, the government would contribute a CESG of $20 per month, paid on a quarterly basis. At an average annual compounding rate of return of 10%, the total investment (including CESGs) of $25,920 will grow to more than cover your child's education costs.