Q: Will you tell your child that they have a RESP?

One of the first things we wanted to set up for Thomas financially when he was born was a Registered Education Savings Plan. Greg and I both paid our way through our undergraduate and graduate degrees with scholarships, earnings from summer and part time jobs, and assistance from our families. Thankfully we didn't have to take out student loans, but many of our friends did (and are still paying them off) so we know the challenges they can create. We wanted to make sure Thomas had a little socked away to assist with his savings in case our financial situation when he's ready for post-secondary doesn't allow for us to contribute, and to ensure that the money we can contribute now has an opportunity to grow through investments before that time.

Living where we do, our provincial government and federal government both offer financial assistance towards raising a child for the first year ($2200 total) and first six years ($7,200 total), respectively. We've decided to put all this money directly in the RESP and top up the remainder of the yearly space ($2500). Now that this is all sorted out in a tidy monthly contribution plan, we're wondering whether (and how) we should tell Thomas that he has it. The company that holds our investment sent us a certificate to show Thomas when he's older that states he is the holder of a RESP. Until receiving it, we hadn't given any thought to when and how we might tell him that he holds this investment. After discussing, at least given what we know now, we think we'll tell him when he's finishing high school and (hopefully) making his plans for further education. We don't want him to think of it as a free ride, and want to encourage him to seek out scholarships and employment opportunities to help make his education plans come to fruition as we did. What do you think? If you have a RESP for your child or expect to open one soon when do you plan to tell them about it? Photo via Queen's University (one of my alma mater).

Smart Cookie

I've sat on the floor at Chapters and leafed through guides on how to organize your finances, create (and stick to) a budget and plan for the future. Though I feel these types of self-help books are a great resource, my limited knowledge and understanding of the financial world often leaves me scratching my head as I attempt to absorb their advice. I budget using excel and I file utility and grocery bills to keep a handle on how much living in 2009 costs. However, I do have a desire to bone up on my knowledge of investing. The turbulence in the markets these days has made the reality that smart investing is very important hit home.

Every few mornings, I leaf through the Metro on the subway to work. I've taken to reading the column by Vancouver's Smart Cookies. These five women changed their financial futures by opening up to each other about their credit card statements, their student loans, their limited salaries. As a result, they've created an empire of dispelling advice on how to remain on a stable financial footing.

Check out their calculators to find out how much of a mortgage you can afford or to compare credit card rates.

A few tips I've gathered from my reading include:

1. Save money on gas by avoiding the drivethru and parking in the first spot you see at the mall.

2. Open a new tax-free savings account

3. Get a part time job at a retailer whose items you would normally buy or would like to save up to purchase to maximize the employee discount.

*Photo courtesy of the National Post.