So you have an RESP… The Government of Canada has created two incentive programs, Canada Education Savings Grant and Canada Learning Bond, to assist with paying for a child’s education.

Canada Education Savings Grant (CESG)

Employment and Social Development Canada (ESDC) provides an incentive for parents, family and friends to save for a child’s post-secondary education by paying a grant based on the amount contributed to an RESP for the child.

Who qualifies for the basic CESG

No matter what your family income is, ESDC pays a basic CESG of 20% of annual contributions you make to all eligible RESPs for a qualifying beneficiary to a maximum CESG of $500 in respect of each beneficiary and a lifetime limit of $7,200.

Who qualifies for the additional CESG

ESDC will also pay an additional CESG amount for each qualifying beneficiary. The additional amount is based on your net family income and can change over time as your net family income changes.

 

Canada Learning Bond (CLB)

Employment and Social Development Canada (ESDC) provides an additional incentive of up to $2,000 to help modest-income families start saving early for their child’s post-secondary education.

The Canada Learning Bond (CLB) will provide an initial $500 to children in modest income families, up to 15 years for a maximum of $2,000.

 

Have questions? Give us a call at (416) 756-4646 or via email at info@millennialfg.com.

 

Source: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-education-savings-plans-resps/canada-education-savings-programs-cesp.html

Share
This