Well it is that time of year when people who have children, think about saving for their children's post secondary education.

The most popular method here in Canada is the RESP (Registered Education Savings Plan), an education savings plan registered under the Income Tax Act.
There are many types available so investigate the risks, costs and cancellation policies. Unlike contributions to an RRSP, RESP contributions are not tax-deductible, but your investment grows in a tax free environment.
For more info visit: http://www.hrdc-drhc.gc.ca" rel="nofollow">LINK

I heard, RESP limit has now changed to $ 2500 instead of $ 2000 and you can get $ 500 instead of $ 400 .

Hi Ashu,

You are absolutely right, the limit now is $2500 and the grant is $500.
Also if you have a lump sum of upto $50,000 you can invest it right away at one shot, but your grant again is limited to only this year and last year i.e you will get only upto $1000 if you are eligible.


I had started this thread to continue on it like my Chindia thread, but due to some time constraints of late haven't been able to contribute.Will do so in a few days.
If you (or anybody else) have any spec questions do ask and I shall def respond.

Enjoy!

It's a very good thread that you have started....I am sure in the past as well there have been some discussions on this topic....as per the changes in the last budget the yearly maximum grant amt did go upto $500. However, the lifetime maximum grant that a beneficiary can recv is still $7200.

RESP is the best way to save for your children's education. In my opinion the CESG (govt grant) is up for grabs and every parents should try to maximise this benefit.

A lot of parents end up contributing towards the end of the year. And sometime it can become difficult to come up with a lumpsum contribution of $2000 to $2500. Hence to avoid this and to get the benefit of compound growth, they should start a regular contribution to resp plan at the begining of the year. I very strongly suggest contributing $48.08 per week, for those who would like to contribute $2500 in a year or $38.47 per week for those who would like to contribute $2000 per year. This way it becomes very easy and you don't have to run to the bank at the end of the year. Plus you get the benefit of compunded growth plus dollar cost averaging.

Like Investpro, I would be glad to answer any question that other members may have.

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The link I posted before is the bus link. Here is the specific one.

http://www.hrsdc.gc.ca/en/hip/lld/cesg/publicsection/CESP/CESG_FAQs.shtml#Q13

Thanks for the helping hand, reachash. Much appreciated.