1. The government contributes to your RESP

The federal government adds to your Registered Education Savings Plan (RESP) savings each year through the Canada Education Savings Grant. And lower-income families may also qualify for the Canada Learning Bond. If you live in Quebec or Alberta, you may also be eligible for a provincial grant.

2. RESP savings grow tax free

You don't pay tax on any investment earnings as long as they stay in the RESP. That means your savings can grow faster.

3. EAPs are taxable in the hands of the student

Tax on educational assistance payments (EAPs) is payable in the hands of your child — not you. Since students tend to have little or no income, they likely won't have to pay much tax on the payments. Contributions can be withdrawn by you or by the student tax-free.

4. You can choose from a variety of investment options

You can choose investments that best suit your investment objectives and risk tolerance, and the number of years your savings will be invested. Different providers offer different investment options. Examples: stocks, bonds, mutual funds, Guaranteed Investment Certificates.

5. Friends and family can contribute

You're not the only one who can put money into an individual RESP. Your child's RESP can grow more quickly with contributions from friends and family.

6. RESP accounts can stay open for 36 years

If your child chooses to defer their education plans after high school, they can still use the RESP funds when they are ready to go back to school. But check the rules of your RESP to make sure there are no restrictions on waiting to continue their education.