Posted by M. Pohorily on Tuesday, November 18, 2008 at 3:59:44 PM
The Government of Canada offers the Canada Education Savings Grant and the Canada Learning Bond to encourage saving for children’s post secondary education. In order to take advantage of these programs you need to set up:
· a registered education savings plan (RESP), and
· your child needs to have a social insurance number.
Canada
Education Savings Grant (CESG)
On the first $500 you save in the RESP account the CESG will provide:
· Up to $200, if your net family income is $37,178 or less
· Up to $150, if you net family income is between $37,150 and $74,357
· Up to $100, if you net family income is more than $74,357
(net family income amounts are for 2007)
If you save more than $500 annually, the CESG could add up to $400 on the next $2,000.
Canada
Learning Bond (CLB)
· If your child was born after December 31st, 2003, and
· Your monthly Canada Child Tax Benefit includes the National Child Benefit Supplement. (normally when family net income is $37,178 or less)
· The Government of Canada will make a payment of $500 into the child’s RESP.
· Payments of $100 a year will be made to the age of 15 as long as the National Child Benefit Supplement is received annually.
· No contributions are required by the family.
· When your baby is born, you apply for a SIN, open the RESP account and receive the Canada Learning Bond you could receive $2,000 ($500 + (15 x $100))for post secondary education.
Registered Education Savings Plan
RESP’s can be opened at most banks, credit unions or financial service providers. There may or may not be fees associated with opening an RESP. Our school division has made arrangements with our financial institution, RBC Royal Bank, for RESP accounts to be opened at with no fees. Parents may contact:
· Dan Fardoe at the Main and Semple branch, 988-5941
· Nicole Rieu at the Mcphillips and Court branch, 954-2552
· Janice Oswald at the Northgate branch, 954-2571
The following link is to the Government’s website which explains these programs in detail and provides contact information for further information.
http://www.hrsdc.gc.ca/en/learning/education_savings/index.shtml
