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Here’s How Much the Government Pays Into Your Child’s RESP

Written by Alanna Schiffer

Like many parents, I’m trying to save up for my child’s post-secondary education (because the future tends to sneak up on me), so I recently opened an RESP . It was difficult to believe at first that the government would contribute to the education savings plan, but it’s true. If you open a Registered Education Savings Plan (RESP) for your child, you’ll have access to up to $7,200 in grants from the federal government, to use for your child’s post-secondary education.

4 Facts About RESPs and Government Grants

Here in Canada, the government encourages parents to open an RESP for their child by offering perks:

  • Saving in an RESP allows you to access government education savings grants.
  • The federal government matches your contributions by 20% (limits apply).
  • Some provinces offer additional grant money on top of the federal grant.
  • The income earned in an RESP is tax-sheltered.

Accessing Government Grants

Opening an RESP gives you access to government grants, making it easier to finance your child’s post-secondary education when the time comes (yes, someday you’ll sleep again).

Through the Canada Education Savings Grant (CESG), the government will match 20% on each dollar you put into an RESP, up to an annual limit of $500, and a lifetime maximum of $7,200 per child. It’s automatic: all you have to do is put money into an RESP, and the government will add CESG funds.

If your family is lower-income, you may be eligible to access the Canada Learning Bond. Just by opening an RESP, these families will receive $500 and could receive $100 per year for each year they qualify, up to $2,000 per child.

Maximizing Government Grants

Don’t forget to also maximize the grants you can get for your child by looking at provincial government incentives. Provinces like British Columbia and Quebec may add money to an RESP on top of any money from the CESG or the CLB. For example, BC offers $1,200 to eligible children through the BC Training and Education Savings Grant (BCTESG).

That’s a lot of acronyms, but it can really pay to keep them in mind. I opened an RESP to help safely grow my savings, which will come in handy when it’s time to pay the rising cost of post-secondary education, and government grants are a welcome opportunity to boost that bottom line. You don’t want to miss out either!

It only takes five minutes to open a CST Spark RESP online, from the comfort of your home. They  have a team of representatives  to answer any other questions you may have. Plus, when you book and complete a call with one of their representatives, you can be entered for your chance to win a $2,500 CST Spark RESP.  Start Saving Today!

*Opinions expressed are those of the author, and not necessarily those of Parent Life Network or their partners.