RESPs are for save for your child's future post secondary schooling. The government will add money to it to help them go through school as well. It can be difficult with a new family to find the funds to start an RESP for your child/children, and asking friends and family for contributions instead of gifts is a good way to start one. Depending on which institution you decide to go with for the RESP savings, you may need a certain amount to start with, or you could start with any amount you want. Shop around and see which bank or private investor will be right for you. Another way to ensure that you are putting in for the RESP is to have your Universal Childcare Benefit go straight into your child's RESP account. Every family in BC with a child under the age of 6 will receive $100 per month from the government to put towards childcare - well we all know that doesn't even put a dent into the actual cost of childcare, but you can put it to other good use as well.
RESPs will help your child not go too far into debt to ensure they have a higher education than just grade 12. And, if they decide not to go to school after high school, the money is given back (minus the government added money) to you to use. Decide what will be best for your child and your family and start saving for them, weather its in an RESP, long term savings account, or something else. Just remember - don't go into debt helping ensure your child doesn't go into debt. Take care of your family, and put a little aside for your child's education, by the time they are 18 and ready to go to university, they will have a good dent into their education payments already at hand.
On the other side, you can also ask for donations to put towards a high priced item - stroller, crib, organic crib mattress, breast pump, etc. This way, you don't get a lot of little things you don't want, and you can still choose what to buy while making people feel like they've made a contribution. It's a win win!
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