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As the financial crisis continues to kneecap American financial institutions and send stock markets into a tizzy, many Canadians are anxiously waiting and watching to see how their investments will fare.

But for parents who need to dip into their Registered Education Savings Plans right now, the situation is much more urgent.

While RESPs are a great way to beef up university savings, they can be very vulnerable in shaky financial times because of the time restraint, says Jonathan Hartman, vice-president of investment products at RBC Asset Management. "You need the money and you need it over the next four years," he says. "I'm sure there are people in need of taking money out today who will be calling their adviser."

Many financial advisers say they approach RESPs much more conservatively than longer-term investing. Some steer parents into conservative investments such as GICs and bonds from the start.

Others tweak the mix as frosh week approaches. At RBC, for instance, an RESP fund aimed at the 2010 school year is down less than 1 per cent in the past three months - compared with the market dip of 20 per cent. RBC's 2025 fund, by comparison, is down 8.4 per cent.

But what can parents, especially those who eschewed a modest approach, do now that the damage is staring them in the face?

Experts say that beyond trimming spending and trying to earn more money, there are a few reasonable solutions to explore.

Some parents may consider using a line of credit to cover short-term tuition needs, in the hope that their RESP investments rebound by next semester, says Aurele Courcelles, the Winnipeg-based director of tax and estate planning for Investors Group. "Be patient," he says. "If you can, wait and see what the market does."

For those with small children, "It's a buying opportunity," he adds.

Parents should also be realistic about how much they can save in time for school, says financial adviser Adrian Mastracci, a portfolio manager at Vancouver's KCM Wealth Management. Even a modest nest egg is a step up. "It may not be what you need to get him through Harvard, but it's a start."

While many on-campus career counsellors and bursary officials say they haven't yet seen a rise in demand for their services in the wake of the crisis, they suggest one reason may be that RESP money for the current semester was withdrawn before the bad news hit. The true test will come in January, when funds may be newly tight.

And there may be a silver lining in all this, says financial planner and television personality Gail Vaz-Oxlade. It may be a lesson in accountability for a generation of kids who haven't had much financial training from their parents.

"So many parents have just footed the bill for their kids to go to university," says the host of Til Debt Do Us Part. "They planned ahead, they took a long time to save that money and they think, that's my child's money. Really?"

Since her daughter is only two years away from attending university, Ms. Vaz-Oxlade has RESP funds stashed in an interest-bearing savings account. Still, she has only offered up the RESP money on the condition that her daughter cover one-third of her own expenses. Ms. Vaz-Oxlade would like to see more Canadians who can afford to foot the entire bill do the same, to encourage fiscal responsibility.

"We're not holding our kids accountable for the job they have to do to go to university."

While she frowns upon huge student loans that may cripple a student's post-university life, she advises students to look into jobs, bursaries and, most of all, scholarships - many of which go unclaimed every year.

"If you're finding the RESP jar a little short, you're going to want to encourage your kids to do what it takes to get some free money."