Q: Hello. I am planning on investing in education for our first grandchild. As our children were near graduating high school when RESPs were introduced I am not well versed in the pros and cons. I was recently told that there is a lot more cost than allowable deductions on income tax.
Question: if the parents of our grandchild have lots of room in their TFSAs, would it make more sense to save for education using the TFSA instead of RESPs? The rationale is that it is non taxable when it taken out for education in the future as compared to taxable even though there is an initial 20% grant from the government with an RESP. And perhaps making RESP contributions at child's older age, a few years prior to university age. Thank you.
Question: if the parents of our grandchild have lots of room in their TFSAs, would it make more sense to save for education using the TFSA instead of RESPs? The rationale is that it is non taxable when it taken out for education in the future as compared to taxable even though there is an initial 20% grant from the government with an RESP. And perhaps making RESP contributions at child's older age, a few years prior to university age. Thank you.