Education can be pricey: Learn how the Government can help.
You want the best for your children. The truth is, the best can be expensive. The Government of Canada has 3 ways to help you save for your child’s education. But it takes a little preparation on your part. Luckily, we have all of the tools you need to prepare now and get your child the future of their dreams.
Registered Education Savings Plan (RESP)
As soon as your child is born, you can open a Registered Education Savings Plan (RESP) account. An RESP is a government approved plan to help you save for your child’s post-secondary education. Income earned within the plan is not taxed until it's withdrawn. The more you save for your child’s education, the more benefits they’ll receive.
- Anyone can contribute
- Money grows tax-free until it’s drawn
If your child chooses not to attend post-secondary:
- Chose an alternate beneficiary
- Transfer the amount to an RSP
- Withdraw the funds
- Donate the income earned to a post-secondary institution
Canada Education Savings Grant
The Canada Education Savings Grant earns 20 cents on every dollar you contribute to your child’s RESP. Contribute up to a maximum of $500 on an annual contribution of $2,500. If you cannot make a contribution in any given year, you may be able to catch up in future years.
Canada Learning Bond
If you’re receiving the National Child benefit Supplement and your child was born after December 31, 2003, you may be eligible for the Canada Learning Bond. This is Government of Canada bond of $500 to help you start saving now for your child's post-secondary education. Plus, your child may qualify for $100 every year until he or she turns 15 years old to a maximum of $2,000!
This money can be used to pay for full-time or part-time studies in:
- Apprenticeship programs;
- Trade schools
Other savings options
If you want to save more or make your investments work harder, we can help. Your savings could earn up to 20% over the next five years when invested in a 5-year Enhanced Growth investment, free of administration fees and purchase commissions. Set up a free financial planning session with one of our investment experts, today!