Up to $7,200 per child available to you
Did you know that the Canada Education Savings Grant (CESG) is available to everyone, regardless of the beneficiary’s family income? Every dollar invested in an RESP can be increased by 20% to 40% with this generous government assistance. When you contribute to a Kaleido RESP, we will handle the grant application for you.
The Canada Education Savings Grant is a government grant paid directly into your RESP by the Government of Canada. Its aim is to encourage parents, grandparents and loved ones to save for a child’s post-secondary education. You could receive an amount equal to 20% of your contributions from the government, with a lifetime maximum of $7,200 per beneficiary (including the additional CESG if the beneficiary is eligible).
The federal government will increase the first $2,500 contributed to your RESP each year by 20%, up to a maximum of $500 per year per child. The CESG is available until the end of the calendar year in which the child turns 17.1 And good news: unused CESG contribution room can be carried forward to subsequent years.2
Here are some examples of the CESG’s benefits for your RESP (excluding the additional CESG):
EXAMPLE 1 :
If you contribute $2,000 annually to your child’s RESP, $400 will be added to the RESP (20% of $2,000 = $400)
EXAMPLE 2 :
If you contribute $3,000 annually to your child’s RESP, $500 will be added to the RESP (20% of $3,000 = $600, but there is a limit of $500 per year)
To qualify for this federal grant, a child must:
Be under 18 years of age.
Be a Canadian resident.
Have a valid social insurance number.
Be designated as the beneficiary of an RESP to which a contribution has been made.
Children from low- and middle-income families are eligible for the additional CESG. This ranges from 10% to 20% of contributions, up to a maximum of $100 per year per child. Eligibility depends on adjusted family net income. The income levels are updated annually by the government.
At Kaleido, we do the paperwork for you! Our team will submit the application on your behalf as soon as the RESP is opened. Once approved, the grant is deposited directly into your education savings plan. Accumulated amounts may be withdrawn as soon as the child is enrolled in eligible post-secondary education.3