For an individual RESP, you name only 1 beneficiary. You don't need to be related to the beneficiary by blood or adoption. For example, you can save money in an individual RESP to help your neighbour's child pay for school. You can change the beneficiary at any time or transfer the funds to another beneficiary's RESP. This is a useful option if you want several children to share the investment income.
For a family RESP, you can name more than 1 beneficiary. You must be related by blood or adoption to these beneficiaries. For example, if you have several grandchildren, you can contribute to a family RESP and divide the earnings among them when they go to school.