As busy parents, just meeting your family's needs each day can eclipse thoughts of the future. Add to that juggling act the cost of running a home, daycare, mortgage and car payments, and it's easy to see how setting funds aside for a child's future education can become something you'll "do later" when you have the time and money.
RESPs are registered education savings plans that grow tax-deferred until the child is ready for university, college or a vocational institute. The student usually pays little or no tax on those funds when they are withdrawn at the student's lower income tax rate.
While there is no longer an annual RESP contribution limit, there is a lifetime contribution limit of $50,000 per child. The Canada Education Savings Grant of up to $7,200 is not included in calculating the lifetime RESP contribution limits.
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