When you welcome a new child to your family, the idea of saving for post-secondary education may feel a bit overwhelming. Opening a tax-deferred Registered Education Savings Plan is a great way to put away money for your child’s future—and you don’t want to miss out on free money to help your savings grow.
Take advantage of free money!
Yes, you read that right! Under the Canada Education Savings Grant, the federal government matches 20% of RESP contributions to a maximum annual amount of $500 per beneficiary (capped to a lifetime limit of $7,200 per child). Unused amounts can be carried forward. And depending on your income, you may qualify for an additional amount of 10-20% on the first $500 put into an RESP. Check the eligibility requirements so you don’t miss out on this great opportunity.
The BC government is also investing in your child’s future. The British Columbia Training and Education Savings Grant (BCTESG) is a one-time grant of $1,200 for BC children born in 2006 or later who have an RESP, although there are some deadlines to keep in mind. The great thing about this program is you don’t even have to make a contribution first! Children are eligible on their 6th birthday, and you have until the day before their ninth birthday to apply.
And finally, you can also get up to $2,000 in free money from the Canada Learning Bond (CLB). As soon as you’ve opened an RESP, the government will put in $500—and just like the BCTESG grant, you don’t even have to make a contribution first! The CLB even covers the cost of opening the RESP by adding in an extra $25 to the first payment. The program provides an additional payment of $100 every year your child is eligible until your child is fifteen, capped at a maximum of $2,000.
Taking advantage of this financial help will give you peace of mind and your kids a helping hand to higher education.