The financial obligations of having children can seem overwhelming; extracurricular activities, tuition, and launching them into adulthood all come with a price tag. Whether you have kids already or not, it’s never too early to start investing – especially when it comes to the future financial health of your children. 

Perhaps the question for you isn’t if you will invest in your child’s future, but rather where to start? There are many options available to you, it all depends on what works best for you and your family. We have broken down some of the standard investment options:


A Registered Education Savings Plan (RESP) is perhaps the most common tool parents use to save for their child’s future post-secondary education. The money invested into an RESP grows tax-free. To encourage Canadians to open RESPs, the Canadian government matches 20% of RESP contributions through the Canada Education Savings Grant, up to a contribution limit of $2,500 per year, per beneficiary. 

To learn more about RESPs, read our blog post.


A Registered Retirement Savings Plan (RRSP) may seem too soon, however, there are a few unique benefits that your child can benefit from. The sooner you invest in an RRSP, the more opportunity there is for your money to compound. As well, a portion of your contributions to an RRSP can be later withdrawn to purchase a home or fund post-secondary education. With the costs of homes continually on the rise, an RRSP can provide an easier way to get your kids into the real estate market. 

Life Insurance

When your child is young and healthy, it is easier and often less expensive to purchase a life insurance policy for them. When your child becomes an adult, in some cases they can take on the policy and pay the same premiums from when they were younger. 


Making small or large contributions to a Tax-Free Savings Account (TFSA) generates flexible funds for your child’s future. Money from a TFSA can be withdrawn at any time tax-free to pay for education, living expenses, purchasing a home, etc. 

Quick Tips:

  1. Start saving early and consistently, regardless of the dollar amount
  2. Save only what you can afford – don’t overextend yourself to make large contributions
  3. Have a plan in case your child decides not to go to college or university
  4. Consult a financial advisor to discuss which options are best for you

To discuss which options might be best for you, talk to one of RaeLipskie’s trusted advisors. To get started, contact us today!

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