This money can be saved, says Evans, and not declared as income. Don't look for this strategy in the Income Tax Act though. There are two limitations. You can only claim up to a maximum of two-thirds of your earned income, and the spouse with the lower income must claim the deduction. From a paper route or babysitting.
Some kids are camp counsellors or swimming instructors.
If you file a tax return on their behalf, they earn RRSP contribution room. And since 1991, says Katz, that contribution room can be carried forward indefinitely. RESPs have become more popular since the federal government added the Canada Education Savings Grant in 1998. And if the government is giving money away, you might as well take it. Unused grant room in any given year can be carried over to the following year.