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The Canada Education Savings Grant (CESG): A financial bonus that enhances your RESP

Kaleido

Written by: Kaleido

October 25, 2022

The cost of your child’s post-secondary education can put quite a strain on your family budget. Did you know that with the Canada Education Savings Grant (CESG), you could receive up to $7,200 lifetime per child in your RESP? A big bonus that may help your child get the job of his or her dreams some day!

What is the Canada Education Savings Grant (CESG)?

A registered education savings plan (RESP) is a highly lucrative investment that helps you save for your child’s post-secondary education and open the door to the career of his or her choice. One of the many advantages of this savings vehicle is the generous government grants that come with it. One of them is the CESG, a grant offered by the Government of Canada to all families, regardless of their income. With this education grant, you could receive up to $7,200 lifetime per child – so make sure you reap the rewards of this opportunity!

What are the eligibility criteria?

The CESG is available until the end of the calendar year in which the beneficiary turns 17. The child must meet the following conditions to receive the CESG:

  • Be a Canadian resident
  • Have a valid Social Insurance Number (SIN)
  • Be the beneficiary of an RESP to which a contribution has been made

Some limitations apply for older children. To be eligible for the CESG, a 16- or 17-year-old must meet one of the following conditions:

  • At least $2,000 was deposited in his or her RESP (and not withdrawn) by December 31 of the calendar year in which he or she turned 15,

or

  • At least $100 a year was deposited in his or her RESP (and not withdrawn) in the four years preceding December 31 of the calendar year in which he or she turned 15.

A big financial boost

The annual Canada Education Savings Grant is 20% of the first $2,500 contributed yearly to the beneficiary’s RESP.

This means that the CESG will contribute up to $500 ($2,500 × 20% = $500) to your child’s RESP every year.

The additional CESG: Extra support for low-income families

For children from low or middle income families, an additional sum equivalent to 10 or 20% of the first $500 contributed to the RESP can be added each year.

The additional amount is based on adjusted net family income. It can represent up to:

  • $100 if the adjusted net family income is less than $50,197 ($500 × 20% = $100)
  • $50 if the adjusted net family income is between $50,197 and $100,392 ($500 × 10% = $50)
Calculator

This simple tool will help you calculate how much your child’s postsecondary education could cost.

Takes about 5 min.

How can I get the CESG?

It’s very simple! Just check your child’s eligibility and then open an RESP. Once the registered education savings plan is open, Kaleido will apply for the CESG for you. The grant, which is based on your contributions, is then deposited directly into your RESP each year.

Tip: To get the most out of the CESG and other grants to which you are entitled, make sure you contribute as much as possible by December 31 of each year.

Plan for your children’s future career!

The RESP is a truly great investment vehicle, largely because of the government grants. Don’t wait: invest in your child’s future career today! By opening an RESP now, you will be helping your child build his or her career. The Kaleido team is there to assist you every step of the way. Contact a representative for more information about RESPs, the CESG and all the other generous grants.

Tags: Saving, Grants