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Canada Education Savings Grant
GET MONEY NOWFOR YOUR CHILD’S EDUCATION
AFTER HIGH SCHOOL
LC-009-10-06
WHO GETS THE CANADA EDUCATION SAVINGS GRANT?• Everychilduptoage17iseligibletoreceivethe
CanadaEducationSavingsGrant.
HOW DO I GET THE CANADA EDUCATION SAVINGS GRANT?• YouneedtoopenaRegistered Education Savings
Plan(RESP).Youcandothisthroughafinancialinstitutionsuchasabankoracreditunion,oralsothroughagroupplandealer,oracertifiedfinancialplanner.
• Youneedtogeta birth certificate for your childfromyourprovincialorterritorialgovernment.
• YoualsoneedtogetaSocial Insurance Number (SIN) foryourchildfromtheGovernmentofCanada.ThereisnocostforaSocialInsuranceNumber.Anyone,evenababy,cangetone.
• TheCanadaEducationSavingGrantwillbedepositeddirectlyintoyourchild’sRESP.
WHAT IS AN RESP? • AnRESPisaspecialsavingsaccounttohelpyou,your
family,oryourfriendssaveforyourchild’seducationafterhighschool.
• ThemoneyintheRESPwillbeinvestedsothatitcangrowandearninterest.
• Youwillnotbetaxedontheinterest,andyourchildcanusuallywithdrawthemoneytax-free.
WHAT IS THE CANADAEDUCATION SAVINGS GRANT?• TheCanadaEducationSavingsGrant(CESG)isagrant
fromtheGovernmentofCanadaforyourchild’seducationafterhighschool.
• Forevery dollaryousaveinyourchild’sRegisteredEducationSavingsPlan(RESP),theCanadaEducationSavingsGrantcouldaddupto40 cents more.
• Yourchildcanusethemoneyforfull-timeorpart-timestudiesinanapprenticeshipprogram,tradeschool,CEGEP,college,oruniversity.
• Overtwomillionchildrenhavealreadybenefitedfromthisprogram.
WHO GETS THE CANADA EDUCATION SAVINGS GRANT?• Everychilduptoage17iseligibletoreceivethe
CanadaEducationSavingsGrant.
HOW DO I GET THE CANADA EDUCATION SAVINGS GRANT?• YouneedtoopenaRegistered Education Savings
Plan(RESP).Youcandothisthroughafinancialinstitutionsuchasabankoracreditunion,oralsothroughagroupplandealer,oracertifiedfinancialplanner.
• Youneedtogeta birth certificate for your childfromyourprovincialorterritorialgovernment.
• YoualsoneedtogetaSocial Insurance Number (SIN) foryourchildfromtheGovernmentofCanada.ThereisnocostforaSocialInsuranceNumber.Anyone,evenababy,cangetone.
• TheCanadaEducationSavingGrantwillbedepositeddirectlyintoyourchild’sRESP.
WHAT IS AN RESP? • AnRESPisaspecialsavingsaccounttohelpyou,your
family,oryourfriendssaveforyourchild’seducationafterhighschool.
• ThemoneyintheRESPwillbeinvestedsothatitcangrowandearninterest.
• Youwillnotbetaxedontheinterest,andyourchildcanusuallywithdrawthemoneytax-free.
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WHAT IS THE CANADAEDUCATION SAVINGS GRANT?• TheCanadaEducationSavingsGrant(CESG)isagrant
fromtheGovernmentofCanadaforyourchild’seducationafterhighschool.
• Forevery dollaryousaveinyourchild’sRegisteredEducationSavingsPlan(RESP),theCanadaEducationSavingsGrantcouldaddupto40 cents more.
• Yourchildcanusethemoneyforfull-timeorpart-timestudiesinanapprenticeshipprogram,tradeschool,CEGEP,college,oruniversity.
• Overtwomillionchildrenhavealreadybenefitedfromthisprogram.
WHAT DOES IT COST TO OPEN AN RESP?• Atsomeinstitutions,youcanopenanRESP
accountforfree.Atothers,theremaybefees.
• AskforadvicetofindanRESPthatsuitsyourneeds.
HOW MUCH CANADA EDUCATION SAVINGS GRANT MONEY CAN I GET?• Ifyournetfamilyincomeisbelow$36,378,*theCanada
EducationSavingsGrantwillgiveyou40centsforeverydollaronthefirst$500yousaveinyourchild’sRESP.
•Ifyournetfamilyincomeisbelow$72,756,*theCanadaEducationSavingsGrantwillgiveyou30centsforeverydollaronthefirst$500yousaveinyourchild’sRESP.
•Ifyournetfamilyincomeisabove$72,756,*theCanadaEducationSavingsGrantwillgiveyou20centsforeverydollaronthefirst$500yousaveinyourchild’sRESP.
Nomatterwhatyournetfamilyincomeis,ifyousaveover$500,theCanadaEducationSavingsGrantwillgiveyou20centsforeveryextradollarupto$2,000.
* This dollar amount is updated every year.
WHAT IS THE MAXIMUM CANADA EDUCATION SAVINGS GRANT I CAN RECEIVE?• $500peryear;and
• $7,200perlifetime.
HOW MUCH MONEY DO I HAVE TO PUT IN THE RESP?• Nomatterhowlittleyousaveinyourchild’sRESP,the
GovernmentofCanadawillstillpaytheCanadaEducationSavingsGrant.
• You,yourfamily,orfriendscanputmoneyintoyourchild’sRESPwheneveryouwant,andyoucansaveasmuchoraslittleasyouwant.
• Even$5aweekcanaddupquickly,especiallywhentheCanadaEducationSavingsGrantisaddedtoyoursavings.
• Thesooneryoustarttosave,themoreyoursavingswillgrow!
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WHAT DOES IT COST TO OPEN AN RESP?• Atsomeinstitutions,youcanopenanRESP
accountforfree.Atothers,theremaybefees.
• AskforadvicetofindanRESPthatsuitsyourneeds.
HOW MUCH CANADA EDUCATION SAVINGS GRANT MONEY CAN I GET?• Ifyournetfamilyincomeisbelow$36,378,*theCanada
EducationSavingsGrantwillgiveyou40centsforeverydollaronthefirst$500yousaveinyourchild’sRESP.
•Ifyournetfamilyincomeisbelow$72,756,*theCanadaEducationSavingsGrantwillgiveyou30centsforeverydollaronthefirst$500yousaveinyourchild’sRESP.
•Ifyournetfamilyincomeisabove$72,756,*theCanadaEducationSavingsGrantwillgiveyou20centsforeverydollaronthefirst$500yousaveinyourchild’sRESP.
Nomatterwhatyournetfamilyincomeis,ifyousaveover$500,theCanadaEducationSavingsGrantwillgiveyou20centsforeveryextradollarupto$2,000.
* This dollar amount is updated every year.
WHAT IS THE MAXIMUM CANADA EDUCATION SAVINGS GRANT I CAN RECEIVE?• $500peryear;and
• $7,200perlifetime.
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HOW MUCH MONEY DO I HAVE TO PUT IN THE RESP?• Nomatterhowlittleyousaveinyourchild’sRESP,the
GovernmentofCanadawillstillpaytheCanadaEducationSavingsGrant.
• You,yourfamily,orfriendscanputmoneyintoyourchild’sRESPwheneveryouwant,andyoucansaveasmuchoraslittleasyouwant.
• Even$5aweekcanaddupquickly,especiallywhentheCanadaEducationSavingsGrantisaddedtoyoursavings.
• Thesooneryoustarttosave,themoreyoursavingswillgrow!
WHAT IF I CAN’T AFFORD TO SAVE FOR MY CHILD’S EDUCATION RIGHT NOW?• Evenasmallamountofmoneycanmakeadifference
whentheCanadaEducationSavingGrantisadded.Plus,thatmoneywillearninterestovertime.
• Youmayalsobeeligiblefora$500CanadaLearningBond:
- IfyourchildwasbornafterDecember31,2003,and
- IfyougettheNationalChildBenefitSupplementaspartoftheCanadaChildTaxBenefit(sometimescalledthefamilyallowanceorbabybonuspayment).Thisusuallyappliestofamilieswhosenetfamilyincomeisbelow$36,378.
• Youcanalsogetanextra$100peryearforupto15years,aslongasyoucontinuetoreceivetheNationalChildBenefitSupplement.
• Youdon’thavetocontributeanyofyourownmoneytogettheCanadaLearningBond.AllyouneedtodoisopenanRESPandtheGovernmentofCanadawilldepositthemoneyintoyourchild’sRESPaccount.
WHAT HAPPENS IF MY CHILD DOESN’T CONTINUE EDUCATION AFTER HIGH SCHOOL?• The RESP can stay open for up to 26 years,soif
yourchilddoesnotcontinueeducationimmediatelyafterhighschool,themoneycanbeusedifheorshedecidestogotoschoollater.
• Ifthemoneyisnotused26yearsaftertheRESPisopened,the amount you saved goes back to you,andtheCanadaEducationSavingsGrantmaybeusedforanotherchild’seducation.TheCanadaLearningBondisreturnedtotheGovernmentofCanada.
HOW DO I GET HELP OR MORE INFORMATION?• Calltoll-freeat1 800 O-CANADA
(1 800 622-6232)forfreebrochuresontheCanada Learning BondandRegistered Education Savings Plans.
• IfyouuseaTTY,call1 800 926-9105.
• LookontheInternetatwww.canlearn.ca.
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WHAT IF I CAN’T AFFORD TO SAVE FOR MY CHILD’S EDUCATION RIGHT NOW?• Evenasmallamountofmoneycanmakeadifference
whentheCanadaEducationSavingGrantisadded.Plus,thatmoneywillearninterestovertime.
• Youmayalsobeeligiblefora$500CanadaLearningBond:
- IfyourchildwasbornafterDecember31,2003,and
- IfyougettheNationalChildBenefitSupplementaspartoftheCanadaChildTaxBenefit(sometimescalledthefamilyallowanceorbabybonuspayment).Thisusuallyappliestofamilieswhosenetfamilyincomeisbelow$36,378.
• Youcanalsogetanextra$100peryearforupto15years,aslongasyoucontinuetoreceivetheNationalChildBenefitSupplement.
• Youdon’thavetocontributeanyofyourownmoneytogettheCanadaLearningBond.AllyouneedtodoisopenanRESPandtheGovernmentofCanadawilldepositthemoneyintoyourchild’sRESPaccount.
WHAT HAPPENS IF MY CHILD DOESN’T CONTINUE EDUCATION AFTER HIGH SCHOOL?• The RESP can stay open for up to 26 years,soif
yourchilddoesnotcontinueeducationimmediatelyafterhighschool,themoneycanbeusedifheorshedecidestogotoschoollater.
• Ifthemoneyisnotused26yearsaftertheRESPisopened,the amount you saved goes back to you,andtheCanadaEducationSavingsGrantmaybeusedforanotherchild’seducation.TheCanadaLearningBondisreturnedtotheGovernmentofCanada.
HOW DO I GET HELP OR MORE INFORMATION?• Calltoll-freeat1 800 O-CANADA
(1 800 622-6232)forfreebrochuresontheCanada Learning BondandRegistered Education Savings Plans.
• IfyouuseaTTY,call1 800 926-9105.
• LookontheInternetatwww.canlearn.ca.
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Thispublicationisavailableinmultipleformats(largeprint,audiocassette,brailleanddiskette)inEnglishandFrench.
Also available in ten other languages.
Call1 866 386-9624(tollfree)onatouch-tonephone.Youcanorderadditionalcopiesofthispublication,indicatingthedepartmentalcataloguenumberLC-009-10-06,from:
Enquiries CentreHuman Resources and Social Development Canada
140PromenadeduPortagePhaseIV,Level0Gatineau,QuebecK1A0J9
Fax:(819)953-7260
E-mail:[email protected]
Cover page and page 3 images by Burch Photographics.
©HerMajestytheQueeninRightofCanada2005Cat.No.:HS28-21/2005ISBN:0-662-68859-7
PrintedinCanada