If I Open an RESP, Will My Child Only Be Able to Study in Canada?

Why This Common Myth Is Holding Families Back and What’s Actually True

When parents think about saving for their child’s future education, the Registered Education Savings Plan (RESP) is often the first option they hear about. And for good reason, it’s one of the most powerful, government-supported savings tools available in Canada.

Yet one persistent myth stops many families from taking advantage of it:

“If I open an RESP, my child will only be able to use the money in Canada.”

This belief is incredibly common, especially among families, multicultural communities, and parents who want their children to have the freedom to study anywhere in the world.

So let’s clear the air. Myth vs. Reality: Can RESP Funds Be Used Outside Canada? The short answer: YES. RESP funds can be used for post‑secondary education outside Canada, as long as the program meets certain eligibility rules set by the Government of Canada.

What types of institutions are eligible outside Canada?

1. Universities (Most Common)

• Many recognized universities in the USA, UK, Australia, Europe, and Asia are eligible.

• Programs must be:

  • Post-secondary level

  • At least 3 consecutive weeks

  • Require 10+ hours per week of instruction

Examples:

• Bachelor’s, Master’s, PhD programs

• Some diploma or certificate programs (if full-time)

2. Colleges and Other Post-Secondary Schools

• Eligible only if they are officially designated by ESDC

• Must meet minimum duration and study-hour requirements

What is NOT eligible?

• High school programs

• Short-term courses or workshops

• Language-only programs (unless part of a recognized degree)

• Private institutions not on the ESDC designated list

How to check if a foreign institution is eligible

You (or your RESP provider) can:

• Check the “Designated Educational Institutions (Outside Canada)” list maintained by the Government of Canada, or

• Ask your RESP financial institution to verify eligibility before withdrawal
  

This step is very important before committing to the school.

How RESP money is paid

• Educational Assistance Payments (EAPs)

  • Includes government grants + growth

  • Paid to the student (taxed in the student’s hands, usually low tax)

• Your contributions

  • Can be withdrawn by you at any time, tax-free
    

Important tips

• Confirm eligibility before enrollment

• Keep the offer letter, enrollment confirmation, and tuition receipts

• Some RESP providers have their own documentation rules

• Exchange rate and international tuition costs should be planned in advance

This Matters for Families

This flexibility means:

• Your child can study anywhere in the world

• You still receive government grants and tax-sheltered growth

• You don’t lose your RESP benefits if your child chooses an international path

• You’re not “locking” your child into Canadian education
  

RESP = freedom, not restriction

Why Parents Shouldn’t Delay Opening an RESP

Every year you wait is a year of:

• Lost government grants

• Lost compound growth

• Lost investment time

Even starting small — $25 or $50 a month — can grow into something meaningful over 18 years. And for families who worry about flexibility, the RESP is one of the safest, most adaptable education savings tools available.

Summary

·       Yes, RESP can be used outside Canada

·       Institution must be ESDC-designated

·       Universities abroad are commonly eligible

·       Always verify eligibility before applying

Your child’s dream may take them across the world. Your RESP can go with them.