The 2 best ways to save & invest for your kids are RESPs and ITF accounts (informal trusts).

To understand this, the best article I have read is by Chrissy on Eat Sleep Breathe FI:

THE ULTIMATE GUIDE TO INFORMAL TRUSTS (FOR CANADIANS)

Why consider an informal trust?

1. Saving for “anything else”

RESPs are best for education savings, but ITF accounts are usually best for saving for anything else. RESPs should be withdrawn fully while the kids are in university, so they are not good for anything the kids will want after university.

2. Saving for future large expenses

ITFs are getting more common. The main uses are education savings above the RESP limits and a down payment for their first home. With real estate getting out of reach for young people, ITF accounts are a great place for parents to save a down payment.

3. Tax-free growth

With proper tax planning, investments in ITF accounts provide essentially tax-free growth. (Assuming you crystallize gains before they get too big—see the taxation section for more on this.)

Read the full article here:

THE ULTIMATE GUIDE TO INFORMAL TRUSTS (FOR CANADIANS)

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