Parents always want the best for their children. With the costs of post secondary education increasing; from tuition to transportation to electronics to housing, parents are looking for ways to increase the affordability of education for their children.
Parents can open a Registered Education Savings Plan (RESP) for their children as soon as they are born. The child has to have a Social Insurance Number (SIN) but once you have that, you can open the RESP. RESPs require a contribution to open the account UNLESS you are applying for the Canada Learning Bond. If you are only applying for the CLB, you don’t have to pay a fee or make a contribution. You simply apply for it at a bank, credit union or on-line and request the Canada Learning Bond.
If you open a RESP for your child with contributions, ask your RESP provider to opt-in to the Canada Learning Bond. If your child qualifies for the CLB, the Canadian Government will calculate entitlement each year from birth to age 15!
The Canadian government has grants for any contributions you make to your child’s RESP!
Each year, the Canada Education Savings Grant (CESG) will add 20% of any Registered Education Savings Plan (RESP) contributions of up to $2,500. That means the CESG could add a maximum of $500 to an RESP each year.
Children in income eligible families could get an extra 10% or 20% added to the first $500 contributed to the RESP each year.
Visit the government of Canada website here for more information.
