RESPs are an excellent low-tax means of saving for a child’s education. Parents and grandparents may put money into an RESP. The money in an RESP grows tax-free. In addition, the government often puts funds into the RESP.
Be careful from whom you purchase an RESP. This is an important business decision. What happens if your child decides not to pursue postsecondary education? Do you get the money back? What happens to the government’s contribution? These and other questions must be asked of the provider.