A new survey completed by TD Canada Trust finds that while savings for college and university tuition for their children is a top goal for most families (93%), the goal has been beyond reachable for most families.  Currently, only 33% of the respondents will have saved enough to pay for 10% of their children’s education.  While only 45% of adults with children eligible to attend a post-secondary institution have even begun to save for college or university.

So what tools do you have available to start saving and make one of Canada’s top financial goals a reality?  In Canada we have the option of opening Registered Education Savings Plans as one path towards saving for our children. An RESP, allows a parent, friend or family member to start putting money aside for a child’s post-secondary education, and opening one for a child has it’s benefits, as the government offer the Canadian Education Savings Grand and the Canada Learning Bond exclusively to RESP subscribers.

RESP funds can be withdrawn when the child enrolls in a qualifying education program- at least three consecutive weeks, with a minimum of ten hours instruction/work per week.  

If your not sure if your child will attend post-secondary y or a qualifying institution, you can always also open a TFSA to put additional contributions into. (You will still want to open an RESP to qualify for grants limited to RESPs). The benefit of the TFSA, is that the money can be withdrawn at any time and for any purpose with no tax consequences.

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