Canadians should start an RESP early and take advantage of government grants to maximize the money available for their child's education, according to senior investment advisor Megan Sutherland.
Since the lifetime contribution limit into an RESP is $50,000, there's technically $14,000 in potential contributions that won't be eligible for an additional government grant. For example, undergraduate tuition in Nova Scotia was $9,328, or 36.5 per cent higher than the national average, StatCan says.
"But I generally think even if you're going to do a more growth-oriented strategy, you should err on the side of caution and be conservative," she said. "Once you get closer to needing the money, I think it's really important to have a strategy to start to make sure that money is going to be accessible," Sutherland says.