The cost of higher education keeps increasing leaving parents starting to save earlier for their kids education. Jason Schaella of the Bank of Montreal says the RESP includes a government grant where they contribute a maxium of 500 dollars a year.
He tells CHSJ News anyone, friend or relative, can contribute to a child's RESP as long as it's linked through a social insurance number to a parent or guardian.
Schaella adds the money earned in an RESP is taxed based on the income of the beneficiary who is normally a young person in a zero to low income tax bracket.
