As we have been discussing all month, education is getting more and more expensive every year, making it that much more difficult to save enough for your child’s future needs. Be sure that you take advantage of any programs that might make this easier for you – like the Canada Education Savings Grant (CESG). The CESG is a grant from the Government of Canada to supplement your savings for your child’s education after high school.
When you contribute money to a Registered Education Savings Plan (RESP) for your child, the Government could provide:
- up to $200, if your net family income is $40,970 or less
up to $150, if your net family income is between $40,970 and $81,941, or
up to $100, if your net family income is more than $81,941.
When you save more than $500 annually, the Canada Education Savings Grant could add up to $400 on the next $2,000.
Note that family income amounts are updated yearly, and the maximum lifetime grant that the Government of Canada can give to your child is $7,200.
If your child doesn’t continue education immediately after high school, your RESP can stay open for up to 36 years and the money can be used if your child returns to school later. If the money is still not used 36 years after the RESP is opened, the amount you saved goes back to you and the Canada Education Savings Grant may be used for a brother or sister’s education. If not, the grant will be returned to the Government of Canada.
For more detailed information, check out Get Money Now for Your Child’s Education After High School, a brochure on the Canada Education Savings Grant.
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