RESP's: the earlier the better

$5238.00 - this is the 2010/2011 cost per year of classes at the University of Calgary humanities program.  This doesn't include any living expenses or campus fees.  The cost is going up. In fact since 2001, the costs have increased 32% and according to this article, tuition fees are increasing three times faster than inflation. Graduates are taking an average of 14 years to pay back their $27,000 (average) of students loans.

There are many people who feel education should be free for Canada's citizens, paid for by the government and subsidized by foreign students as it is in some countries (Germany, France, Italy, Norway, etc.).  Maybe someday that will be the case, but for now, a very expensive Canadian education is the reality.

There are ways to help absorb the impact when the time comes; bursaries, scholarships, and grants are very helpful if your student has the marks. Another option is RESP's. A registered education savings plan is a great way to plan for the future.

I came across an article this morning in The Windsor Star's 'money' section that has a great overview of RESP's; every family who aspires to send their kids to a post-secondary institution should consider this investment. As the article says, its better to start as early as possible to increase the benefit but its not too late even up to your child's 15th birthday year.  The government kicks in an additional 20% of your contribution up to $500 each year.