Over the past decade, annual post-secondary tuition fees in Canada have on average more than doubled. Students now graduate from post-secondary studies with an average debt load of $25,000-a huge increase from $9,000 just a decade ago.

At the same time, advanced education has become more important to success than ever in our increasingly knowledge based economy. All this means that you need every advantage you can get when saving to help your children pay for their university education. And you need to get started saving as soon as possible.

One of the most effective ways to create an adequate education fund is through a Registered Education Savings Plan (RESP). The investments are sheltered from taxes, and when pulled out for your children's education, they are taxed in their hands.

The following characteristics are what make an RESP a powerful cash-accumulation vehicle:

Tax deferred growth. You can contribute up to $4,000 per child, per year, to a lifetime total of $42,000 per beneficiary. Earnings accumulate tax-deferred, as long as they're in the plan.

Government grants. The Canada Education Savings Grant (CESG) program tops up RESP contributions.* A regular annual contribution of $2,000 will generate an annual grant of $400 for most beneficiaries.
Flexibility. If the beneficiary chooses not to pursue post-secondary education you have a number of options. Depending on the plan, you may be able to select a different beneficiary, or transfer the earnings on a tax-deferred basis to a Registered Retirement Savings Plan (certain restrictions apply).
Anyone can contribute to an RESP, not just parents. But be sure to plan as a family, since RESP limits are per beneficiary, not per subscriber. For more information, please contact a qualified Financial Consultant.

Try these three strategies to help your child to succeed:

1. Try to invest at least $2,000 a year.
A $2,000 contribution for an eligible child will receive a $400 CESG. But remember, age matters. If you invest the annual $4,000 maximum, you'll reach the $42,000 lifetime limit in less than 11 years. But, because the CESG is paid only on the first $2,000 of annual contributions, you might not receive the full $7,200 in CESG money (although you will benefit from a longer period of tax-sheltered growth). Talk to a qualified Financial Consultant. on what is the optimum RESP contribution strategy for your situation.

2. Obtain a Social Insurance Number for your child.
You cannot open an RESP without one. If you need assistance, contact a qualified Financial Consultant.

3. Update your will
RESPs have estate implication. Speak with your Investors Group Consultant about using your will to name a new subscriber, decide if the beneficiary will receive the plan's principal in addition to its earnings, and provide directions in case the beneficiary does not pursue post-secondary studies.
* The CESG program is administered by Human Resources Development Canada (HRDC).