The Canada Education Savings Grant is a government grant for those saving for a child’s education. The grant amount varies based on income and is deposited into a Registered Educational Savings Plan (RESP) account. The money can be used for postsecondary education, and if not used, can be returned to the parents or used for the education of siblings.
The Canada Education Savings Grant is a monetary grant from the Canadian government given to individuals who are saving money for a child’s education. When parents, grandparents, or others save a specified minimum amount of money in a child’s Registered Educational Savings Plan (RESP), the government contributes additional funds to the child’s RESP. The more money saved, the more grant money the child receives. The amount of the grant depends on the family’s net income, with those who earn less income receiving more money. This program encourages parents and guardians to save early for a child’s college education.
After a child is born, their parents can open a RESP account to start saving for their education. These accounts can only be opened at a Canadian bank or similar financial institution or with a certified financial planner. Parents will need a Social Security Number (SIN) for the child, which requires a birth certificate or permanent resident card. Once the account is opened, the financial institution can apply for the Canada Education Savings Grant which will be deposited into the child’s RESP account when the parents make the minimum contribution.
When parents save a minimum amount of money in the child’s RESP account for a year, the Canadian government contributes a certain amount of money to the RESP account. If parents save an amount that meets another contribution threshold, the government contributes more money to the RESP account. The amount the government contributes varies, depending on the family’s net income.
All children under the age of 18 can get a Canada Education Savings Grant, as long as they are Canadian residents. However, special rules apply for children who have reached the age of 15 and wish to continue receiving the Canada Education Savings Scholarship. The child’s RESP account must have a certain minimum amount by the end of the year in which the child turns 15. For example, if the child turns 15 in March 2010, the parents must have contributed at least the minimum amount specified in the child’s RESP account by December 31, 2010.
When your child graduates from high school, they can pay for full or part-time studies at postsecondary institutions using funds from their RESP account. If the child does not return to school after graduation, the money remains in the RESP account for up to 36 years from the date the account was opened in case the child decides to continue education later. If the child does not continue his education, the parents receive the amount they saved. The Canada Education Savings Scholarship can go towards the education of the child’s siblings or be returned to the government.
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