Opportunities for Parents To Save For Their Child’s Post-Secondary Education or Training
Most, but not all parents, are aware of the Registered Education Savings Plan (RESP) which is a special savings account that can help parents, family or friends start saving now for a child’s education after secondary school. Fewer, however, are aware that when an RESP account is opened for a child, the Government of Canada adds money to the account through two special savings incentives, the Canada Education Savings Grant and the Canada Learning Bond.
The Canada Education Savings Grant provides grants, up to a maximum lifetime of $7,200, depending on parental income and the amount of parental contributions. The Canada Learning Bond provides an outright grant of $500 plus an additional $100 per year up to age 15 for those who open an RESP account even if parents are unable to add any of their own contributions to the account. To qualify for this grant, parents must be eligible to receive the National Child Benefit Supplement.
As is often the case with targeted initiatives, those who would benefit the most are often unaware or hesitant to take advantage of these programs. In 2009, just over 40% of Canadian families with children received the Canada Education Savings Grant and fewer than 20% of eligible families received the Canada Learning Bond.
Brochures on these programs are available in a variety of formats and languages directly through HRSDC on these websites:
Registered Education Savings Plan
Canada Education Savings Grant
Canada Learning Bond
Minister of Education
Mary Jean Gallagher
Chief Student Achievement Officer of Ontario
Assistant Deputy Minister
Student Achievement Division
January 6, 2011