Most, but not all parents, are aware of the Registered Education Saving 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 Governement 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.
To take advantage of savings programs available to you, and for more information, click on the following links.
Registered Education Savings Plan
