Saving for your child’s education; it is possible!

Saving for education

It may be the world’s best-kept secret, but did you know there is money available to all low-income families in Canada to help them save for their children’s education? For starters, the Canada Learning Bond is a federally-funded education savings grant for children of lower-income families receiving the National Child Benefit Supplement. The Canada Learning Bond offers up to $2,000 in RESP contributions, with no family contribution required, to children born after December 31, 2003. But that’s not all; there are at least two other little-known sources of government funding available to parents valued at up to $11,000 per child!

Here are the nuts and bolts of each:

Funding Source

Uses

Criteria

Maximum Amount of Program

Required Contribution by Parent

Potential Value at end of Plan (including parental contributions where required)

Canada Learning Bond

This money can be used to pay for full-time or part-time studies in:

  • apprenticeship programs;
  • CEGEPs;
  • colleges;
  • trade schools; or
  • universities

Available to lower-income families receiving the National Child Benefit Supplement or an annual income of $44,701 or less with children born after Dec. 31, 2003

$2,000 per child

($500 offered by the Government for your child’s education after high school. Plus, your child could get $100 every year until he or she turns 15 years old to a maximum of $2,000!)

$0

$2000

Canada Education Savings Grant

This money can be used to pay for full-time or part-time studies in:

  • apprenticeship programs;
  • CEGEPs;
  • colleges;
  • trade schools; or
  • universities

Available until the end of the calendar year in which the child turns 17, as long as:

  • the child is a Canadian resident;
  • an RESP has been opened in their name; and
  • a request is made for the grant

$7,500 per child

(20% on every dollar you contribute, up to a maximum of $500 on an annual contribution of $2,500. If you cannot make a contribution in any given year, you may be able to catch up in future years.)

$100-$2,500 annually

$45,000

Additional Canada Education Savings Grant

This money can be used to pay for full-time or part-time studies in:

  • apprenticeship programs;
  • CEGEPs;
  • colleges;
  • trade schools; or
  • universities

Available until the end of the calendar year in which the child turns 17, as long as:

  • the child is a Canadian resident;
  • an RESP has been opened in their name;
  • contributions have been made to their RESP; and
  • the Additional Canada Education Savings Grant has been requested

10-20% on the first $500 RESP contribution

The amount of money that each child can receive in additional grant money depends on the net family income of the child’s primary caregiver.

  • 20% of RESP contribution if family income is $43,953 or less
  • 10% of RESP contribution if family income is between $43,953 and $87,907

As above

$1,500

Applying for a Social Insurance Number

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