Candice Bergen, Minister of State for Social Development, is encouraging families to save for their children’s post-secondary education with the help of the Canada Learning Bond and the Registered Education Savings Plans (RESP).
Bergen spoke at the India Rainbow Community Services in Mississauga, which actively promotes education savings in the Greater Toronto Area.
The Canada Learning Bond is $500 that the federal government deposits into a Registered Education Savings Plan (RESP). A child may then be eligible for another $100 per year, until he or she is 15 years old, up to a maximum of $2,000.
Parents, or primary caregivers, do not have to contribute any of their own money to receive the Canada Learning Bond. Parents should talk to a financial institution to find out if they are eligible.
The RESP and the Canada Learning Bond is an easy way for parents to start saving early.
Families can get the Canada Learning Bond in three steps:
– obtain a Social Insurance Number for the child;
– open an RESP; and
– apply for the Canada Learning Bond.
“Our government recognizes that access to post-secondary education is vital, not only for a young person’s future, but also for Canada’s long-term growth and prosperity,” said Bergen.
“An RESP, supplemented with the Canada Learning Bond, helps modest-income families make post-secondary education a reality for their children. This is important information that every eligible family should know.”
To receive the Canada Learning Bond, a child must have been born in 2004 or later. The primary caregiver must also receive the National Child Benefit Supplement under the Canada Child Tax Benefit (sometimes known as the “family allowance” or “baby bonus”).
Families can also receive the Canada Education Savings Grant when opening a Registered Education Savings Plan (RESP). The federal government adds between 20 per cent and 40% of contributions to a child’s RESP, depending on family income.
The amount could be up to $600 per year, to a lifetime maximum of $7,200 per child.
If a child does not continue his or her education soon after high-school, the RESP can remain open for up to 36 years should the child later pursue post-secondary education.
If the RESP is closed:
– contributions are returned to the subscriber;
– the Canada Learning Bond must be returned to the Government of Canada; and
– the Canada Education Savings gant can be shared with a brother or sister if he or she has grant room available—otherwise, the grant must be returned to the Government of Canada.
For information on how to apply for the Canada Learning Bond, and save for post-secondary education, visit CanLearn.ca or call 1-800-622-6232.
