First, a parent or relative (the subscriber) sets up an RESP. They can then choose one or more children to be the beneficiaries. If it’s a family plan, only siblings related by blood or adoption to the subscriber can be added as beneficiaries—so aunts and uncles can’t set up a family plan for their nieces or nephews.

Over time, the subscriber consistently adds money to the RESP. Meanwhile, the financial provider assists the subscriber to apply for government education savings grants to make the most of any available contributions—because who wouldn’t want extra support from the government?
When the child is ready for post-secondary school, they can start taking out money from the RESP as Education Assistance Payments (EAPs) and contributions are returned tax-free to the subscriber.