In this section we are discussing Canada Education Savings Grant and Canada Learning Grant.
- Canada Education Savings Grant (CESG)
The Canada Education Savings Grant (CESG) program provides grants to Registered Education Savings Plan (RESP) contributors until the beneficiaries reach the age of 17.
- Canada Learning Bond
The Canada Learning Bond (CLB) program provides a $500 bond for children born to families who receive the National Child Benefit Supplement under the Canada Revenue Agency’s Canada Child Tax Benefit program.
Canada Education Savings Grant (CESG)
The grant has two parts:
- Basic Canada Education Savings Grant
The Basic Canada Education Savings Grant will give you 20% on every dollar of the first $2,500 you save in your child’s RESP each year.
Depending on your net family income, you could receive an extra 10% or 20% on every dollar of the first $500 you save in your child’s RESP each year.
Who can get the grant?
- All children under age 18 are eligible, as long as they are Canadian residents and an RESP has been opened for them.
- Special rules apply if your child is between the ages of 15 and 17. See Special Rules for Children Aged 15 to 17 Additional Canada Education Savings Grant
Canada Learning Bond
The Canada Learning Bond (CLB) is $500 offered by the Government of Canada to help start saving now for your child’s education after high school.
Plus, you child could get $100 every year until he or she turns 15 years old to a maximum of $2,000!
- The child’s family must receive the National Child Benefit Supplement.
Children must meet the following criteria:
- have been born after December 31, 2003
- have a birth certificate
- have a Social Insurance Number (SIN)
- be a beneficiary under an RESP
- reside in Canada
- The children qualify for $100 Bond installments until age 15 for each year their family is entitled to the Supplement.
- The Bond is paid into an RESP established by the family.
- The first Canada Learning Bond payment includes an additional $25 to help cover the cost of opening the RESP account.
- Visit the CanLearn Web site at Service Canada to get more details on CESG.
- Information on RESPs and CLB application procedures is available from banks, mutual fund and brokerage companies, insurance and trust companies, companies and foundations that specialize in education savings plans, and other financial institutions.
It is important and very simple to do. Visit your financial institution and talk to a Financial Advisor, they will be happy to help you. Please take advantage of this opportunity to make your children’s education much easier.
- Tax-effective ways to get funds out of RESPs (business.financialpost.com)
- Savings Plan – for Families and Children (controllingthedebtmonster.wordpress.com)