Canadians Using Robo-Advisors for Kids’ Education Savings

The cost of universities in Canada is increasing at a rate that is beyond the ability of most families to afford. On average, in 2025/2026, the cost of an undergraduate degree program is approximately $7,734 per year for domestic students, and when you include housing, books, and living costs, it can easily exceed $100,000 in four years. For parents juggling work, family, and finances, finding time to research investments or meet with an advisor can feel overwhelming. That is why an increasing number of Canadians are resorting to robo-advisors, which are automated and low-cost tools that have simplified and smartened saving towards the education of a child like never before.

These online platforms are changing the way families are growing their Registered Education Savings Plans (RESPs). Parents can create an account with only a few clicks, set a goal, and have algorithms create a diversified portfolio that grows tax-deferred. Better still, the government helps out with matching grants through the Canada Education Savings Grant (CESG)—$500 a year per child on a $2,500 contribution.

What Are Robo-Advisors and Why Pair Them with RESPs?

A robo-advisor is an online platform that helps you create and manage an investment portfolio based on your financial objectives using algorithms. You do not need to select stocks or check the market every day; only answer several questions regarding your time horizon and risk tolerance, and the platform will do the rest. The benefits are multiplied when you pair a robo-advisor with an RESP. RESP contributions accumulate tax-deferred until the time your child withdraws the money to finance post-secondary education, typically at a time when their income (and tax rate) is low. The CESG will contribute 20 per cent to your annual contributions, up to $500 per child per year, and a lifetime maximum of $7200.

Even without personal contributions, families with lower incomes can also qualify to receive the Canada Learning Bond (CLB), worth up to $2000. Most robo-advisors today have target-date RESP portfolios that automatically change over time, such as growth-oriented investments, like stocks when your child is young, to more conservative investments, like bonds, as they approach graduation. This set-it-and-forget-it strategy is ideal for busy parents. If you’re just starting your research, our detailed guide on how to pick the best robo-advisor in Canada walks you through the key questions to ask.

The Best Robo-Advisors for Canadian Parents In 2025

Not every robo-advisor offers the same features for RESPs. The following are three of the best options that Canadian parents are opting for in 2025:

• Wealthsimple–The most popular robo-advisor in Canada has a smooth design, no minimum investment, and a fee ranging between 0.4% and 0.5%. Portfolios have socially responsible options and automatic rebalancing- best suited to hands-off investors.
• Questwealth Portfolios (Questrade)–Questwealth has some of the lowest management fees in the market at 0.2. Its ETF-based RESP portfolios serve various levels of risk, and its balanced portfolios have delivered strong long-term returns (past performance not guaranteed). An excellent option for families with a tight budget, but it requires a $1,000 minimum.
• Justwealth–For parents who prefer a bit more personal guidance, Justwealth combines automation with access to a dedicated advisor. Their platform specializes in customized RESP planning, making it best suited for complex family cases. Fees start at 0.5% and there is no minimum investment for RESPs.

To learn more about the best robo-advisors, check our article on Best Robo-Advisors in Canada for 2025.

How to Open an RESP Using a Robo-Advisor

It requires less than 15 minutes to start. Here’s how:

• Comparison of platforms– Compare the fees, investment choices, and features of the app.
• Open an RESP- Select individual or family plans and enter your SIN and the SIN of your child.
• Establish your objective – Use the built-in calculators to project growth. As an example, a 6% growth (with CESG) of saving $150/month between the ages of 5 and 18 can amount to 65,000+.
• Automate contributions – Link your bank account and schedule deposits.
• Apply for grants – The majority of robo-advisors automatically complete the CESG and CLB form paperwork.
• Track progress – Periodically check your app and review progress, and make the necessary changes.

Pro Tip: Getting started early- even $50/month will qualify for the CESG grant. Calculate your savings using the RESP calculator of Canada.ca to determine how much you will earn over time.

Common Mistakes and Smart Strategies

Avoid These Pitfalls

• Over-contributing: The maximum amount of lifetime RESP is 50,000 per child; the surplus will be penalized.
• Premature withdrawal: Withdrawing the grants and investment earnings for non-education purposes loses grants and incurs tax penalties (subscriber’s rate +20% additional tax).
• Panic when the market declines: RESPs are long-term investments- remain invested and consistent, as they have a 35-year lifespan.

Smart Strategies

• Select a family RESP when you have several children; it allows you to transfer the money when it is necessary.
• Annual review: The majority of robo-advisors send performance update reports and recommend adjustments (e.g., changing allocation as the child nears graduation).

The Bottom Line

Canadian parents are now able to invest in the future of their children easier than ever before through the use of robo-advisors. They eliminate the guesswork of education savings with automated management, government grants, and low fees. Your child’s education may be years away, but every dollar—and every grant—counts. Start small, stay consistent, and let automation and compounding do the rest.