An RESP is an account registered with the Government of Canada to help you save for a child's post-secondary education. Some key features of RESPs:
If you choose to open an RESP, you should choose your RESP provider and the type of RESP carefully to make sure you find the one that best suits your needs. Here is a list of questions you should ask before you open an RESP.
Try to open the RESP as soon as possible after your child is born so that you can take full advantage of government grants.
Another option to help you save for your child’s post-secondary education is a Tax-Free Savings Account (TFSA). However, with a TFSA, you aren’t eligible for the government grants (that can amount to thousands of dollars) that you are with RESPs.
If you’ve reached the maximum value of the government grants that you are eligible for with an RESP, then a TFSA could be a good alternative to putting money away for your children’s education.