Saving For Your Children's Future

NOV 14, 2017


RESP’s – Are You Maximizing Your Child’s Education Savings?

We all know how expensive a post-secondary education can be and how important it is to start saving as early as possible. A Registered Education Savings Plan (RESP) can be extremely beneficial in giving your child the funds they need to start their post-secondary education off on the right foot. Also, when it comes to education savings, the government is there to help. Did you know that the provincial and federal governments will provide money for your child’s RESP in addition to the money you contribute each year?

The Canada Learning Bond

The Canada Learning Bond is available for children from low-income families born in 2004 or later and provides an initial payment of $500 in a Registered Education Savings Plan (RESP) for a child’s post-secondary education. Additionally the child could receive $100 for each year of eligibility, up to the year they turn 15, for a maximum of $2,000.

Personal contributions to an RESP are not required to receive the Canada Learning Bond.

The Canada Education Savings Grant

The Canada Education Savings Grant is money the Government of Canada adds to contributions made in an RESP for the post-secondary education of a child, aged 17 or under. For every $10 saved, the Government will add between $2 and $4 for a child’s education, depending on the family’s income and how much is saved every year.

With the Canada Education Savings Grant your child could receive up to $500 per year and, depending on your net family income, an extra $50-100 per year with the Additional Canada Education Savings Grant. For more information on eligibility and how to apply visit the Government of Canada website at:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-education-savings-plans-resps/canada-education-savings-programs-cesp/canada-education-savings-grant-cesg.html

Eligible children could also receive an additional $1,200 through the BC Training and Education Savings Grant. For more information on eligibility and how to apply visit the Government of British Columbia website at:

https://www2.gov.bc.ca/gov/content/education-training/k-12/support/bc-training-and-education-savings-grant