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!
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!
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:
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:
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.
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:
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.