Why an early RESP start should be a top priority

Even if money is tight, a risk-free return of 20% is too good to pass up.

Pira Kumarasamy 29 September, 2017 | 5:00PM

The Who's classic-rock song, The Kids are Alright, doesn't quite ring true today in a world of soaring tuition costs and dismal savings. A recent poll sponsored by CIBC found that students on average say they expect to spend nearly $14,000 annually on their education. The poll also found that two-thirds of students don't have a registered education savings plan (RESP) to help them with the cost.

These findings might not be shocking, but they do indicate that a shift in priorities is needed in order to get ahead of the savings game. Starting early is the best -- if not only -- course of action to make the rising cost of education feasible for the next generation of scholars. For those in the millennial generation, however, it's not so clear-cut.

Shrishma Dave is one such millennial.

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About Author

Pira Kumarasamy

Pira Kumarasamy  Pira Kumarasamy is a financial writer who writes for Morningstar on personal-finance topics, with an emphasis on issues affecting the millennial generation. She holds a bachelor of arts, economics and accounting from Wilfrid Laurier University.

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