Post-secondary education might still seem like a far-off milestone in your child’s life, but it is never too early to start saving! The Government of Canada has set aside money to help make post-secondary education more affordable for all Canadians, and the NWT Literacy Council is committed to raising awareness of this program and supporting families in signing up so as many children as possible have money set aside for their future.
The Government of Canada has three different categories of Education Savings Incentives to help save for a child’s post-secondary education:
- Canada Learning Bond (CLB)
- The CLB is money that the government adds to a Registered Education Savings Plan (RESP) for children from low-income families.
- The government will deposit $500 when you open an RESP account for an eligible child.
- The government will deposit $100 each year for an eligible child, for up to 15 years, to a total of $2000.
- Canada Education Savings Grant (CESG)
- The CESG is money that the government adds to an RESP.
- You must contribute to the RESP in order to receive this money.
- Basic CESG pays 20%, up to $500 per year.
- Additional Canada Education Savings Grants (A-CESG)
- Additional CESG pays 10-20% more based on income, up to $50 or $100 per year on top of the basic.
Why save?
Even though the NWT has a great Student Financial Assistance program, extra money saved for a child’s future education can be beneficial in many ways. When a child has money set aside for their post-secondary education, they are more likely to graduate from high school, and more likely to go on to further education like college, university, trades programs or apprenticeships. Extra savings can mean money for an extra trip home to visit family, having to work fewer hours at a part-time job, being able to afford better food or self-care items, and having an emergency fund for things like replacing a broken laptop.
Make the difference
In 2019 the NWT Literacy Council received project funding from the Government of Canada to increase awareness and take-up of Canada’s Education Saving Incentives. Our project aims to improve the take-up of the CLB program in the NWT. There are more than 4,000 eligible children in the NWT not receiving this benefit!
Everyone in a child’s life can open an RESP and show their support for their education. Are you interested in CLB resources, promotional materials or more information on savings incentives like the Canada Education Saving Grant or Canada Learning Bond? You can contact me through e-mail or call the office for assistance in signing up a child in your life. You can help make the difference in a child’s future.
- Charlotte Upton, Canada Learning Bond Coordinator/ Skill Builders for Youth Coordinator, charlotte@nwtliteracy.ca
