How to adjust your RESP investing strategy as your child grows

By Jessica Gibson on September 3, 2026
Estimated reading time: 5 minutes

Far from being a set-it-and-forget-it account, an RESP requires an investment strategy that shifts from volatility and growth to stability and preservation of your investments.

Here’s a quick look at how your RESP investing strategy should change over time:

	Young child under 10	Child to age 15	Older child age 16+
RESP goal	Start contributing and prioritize growth	Balance growth and risk	Transition to a conservative investment strategy
Focus areas	* Open an RESP even if you can’t make the maximum contribution for the year* Get in the habit of regularly contributing to the account	* Continue making contributions, with the goal of hitting the annual maximum* Evaluate your RESP and rebalance the funds to start shifting away from risky investments	* Gradually reduce risky investments to favour stable investment options* Develop an RESP withdrawal plan with the beneficiary
Mindset	Start contributing to take advantage of tax-deferred growth	Optimize your contributions rather than simply contributing to the account	Protect the account as the withdrawal date approaches

Ages 0 to 9: Focus on growth

Your biggest asset with an RESP is the time the funds have to grow tax-deferred, so the earlier you start investing, the better. This is largely because the RESP has more time to recover from market ups and downs. It also means that your investments have greater potential for long-term returns.

If market volatility causes short-term fluctuations, the account has plenty of time to recover before your beneficiary needs to withdraw the funds. In the meantime, keep making your regular contributions, so you can receive government grants.

MoneySense Tip

With the Canada Education Savings Grant (CESG), the government matches 20% of your annual contributions, up to $500 per year. To get the annual maximum government match, you’ll need to contribute $2,500 in a given year.

Ages 10 to 15: Balance growth with stability

By the time your child enters their pre-teen/teenage years, you’ll want to check the RESP investment types. Instead of overhauling the account, gradually start shifting investments from potentially risky stocks to bonds and GICs.

If you’re not particularly investment-savvy, you don’t have to manage this shift yourself. Working with an expert RESP provider like Embark means this glide path investment strategy is built directly into the plan. As your child ages into their middle and late teen years, your investments are automatically transitioned from high-growth to balanced allocations taking the guesswork out of timing the market and helping maximize returns by the time they’re ready to withdraw.

Ages 16+: Protect your savings

As your child gets closer to withdrawing the funds for tuition payments, it’s critical that you don’t lose funds because of a market downturn. Continue to shift the portfolio to lower-risk investments to protect the RESP from volatility.

This is also the time to begin planning withdrawals; you’ll need to decide when your beneficiary will begin accessing Educational Assistance Payments (EAPs). Then, you can determine if there are remaining investment funds that you’ll be taxed on. These are Accumulated Income Payments (AIPs).

A simple RESP check-up: Are you on track?

Now that you have a basic idea of how you should invest in the RESP, give your strategy a quick check. Ask yourself the following questions to identify any changes you might need to make:

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Does my investment strategy reflect my child’s age? For instance, if the investments are primarily GICs but your child is still in elementary school, you may want to switch to a higher mix of stocks to maximize growth.
Have I reviewed my RESP in the last year? If the answer is no, it’s time to review the account. Don’t forget to see whether you’re getting the government matches for your contributions.
Am I contributing regularly? If you’re only contributing when you happen to remember, you might be missing out on investment opportunities. Consider automating your investments so you stay on track.
Do I know whether my investments become less risky over time? You can speak with a financial advisor or look at the types of investments in the RESP. Generally, Canadian equity index funds and international developed markets are riskier than government bonds, GICs, and high-interest savings accounts.
If markets dropped tomorrow, would I still feel comfortable with my RESP? This question is closely tied to the account timeline. That’s why it’s important to be conservative with your investments the closer your child is to needing the funds.

If you answered “no” or “I’m not sure” to any of these questions, it might be time to make some changes.

An easier way to manage your RESP over time

Monitoring an RESP can seem like a lot of work, especially if you’re not confident in adjusting your investments. Fortunately, some RESP providers, including Embark, offer age-based portfolios that automatically adjust as your child grows.

An age-based portfolio evolves from growth-oriented investments (like stocks) toward more conservative investments (like bonds and savings accounts) as your child gets closer to post-secondary education. With no ongoing monitoring or rebalancing needed on your part, you can rest assured that the funds you set aside for your child’s future will be there when they need them.

FAQs

What is the best RESP strategy?

The best strategy is the one you feel most comfortable with, whether that’s self-directing the investments as your child grows, or choosing an age-based portfolio that’s managed by the RESP provider.

What is the maximum RESP value?

The government places the lifetime limit of the RESP account at $50,000 per beneficiary.

What can you invest in with an RESP?

If you’re going the self-investing route, you can select stocks, exchange-traded funds (ETFs), mutual funds, high-yield savings accounts, and fixed-income investments like GICs and bonds.

About Jessica Gibson

Jessica Gibson is a personal finance writer with over a decade of experience in online publishing. She enjoys helping readers make informed decisions about credit cards, insurance, and debt management.