Home Finance Guru
| Register

Ask 2 Experts
1. How To Host A Budget Friendly Adult Birthday Party
2. How To Live Large Without Breaking the Bank
3. Til Debt Do Us Part
4. Top 10 Power Couples of All Time
5. Sweetie, Want to Run a Business Together?
6. Q&A: Money Expert Jacquette M. Timmons
7. Take This Career and Shove It!
8. Recession-Proof Your Relationship!
9. Budget Boot Camp
10. World Changing Couples
Advertise With Us!
Q: We plan to start having children soon. When should we set up a RESP?

Diana says...
With any savings plan, the sooner you start a disciplined habit, the better. In the Registered Education Savings Plan, contributions of up to $4,000 a year can be made for each child to a lifetime maximum of $42,000. As a tax sweetener—via the Canadian Education Savings Grant (CESG)—the federal government kicks in 20 percent, or $400, to the first $2,000 in contributions made into an RESP. An RESP is also a great gift idea: So to prepare your folks for their roles as the extra-doting grandparents, give them a nudge nudge to open a plan.

Diana Cawfield is an award-winning financial writer with more than 10 years experience. Send her your questions here.