It may be tempting to buy another colourful toy or adorable outfit for your baby, but saving for your child’s future is a wiser choice. Even though it may be difficult to save for your child’s education due to other financial commitments, it’s a worthwhile investment given the rising costs of education.

Most sleep-deprived new parents find it hard to think beyond their baby's next feeding, but if you start early and build some education savings into your living-expense budget you will be amazed at how much you can save up.

The most common way of saving for a child's education is through RESPs. For as little as $10 a month you can secure a future for your child through post secondary education.

RESPs offer two advantages. The first is that the money in the account will grow without the government taxing the returns each year. When the money is used to pay for a college or university education, it's the child who will report the income, not the parents. Since the child’s income will most likely be low, the tax bill will be small.

The second advantage is the financial contribution the government will make to a child's education. Depending on the family income, the Canada Education Savings Grant will pay out between 20 and 40 per cent of the first $500 the parents save each year for their child's RESP. There will be an additional grant of as much as $400 annually on the next $2,000 worth of contributions. That’s a guaranteed return on investment of 20 per cent! There is also a third grant - a one time payment of $1,200 for when your child turns 6. Not all financial institutions have access to this grant. Each child has access to $10,400 in total grant money.

The hard part is deciding how and where to invest the RESP. Talking to an expert in financial planning and RESPs is the best way to wade through the many different options.

In Kelowna there are many Financial Planners & RESP experts:

Here are a few that would love to help guide you through all of your options.