We’ve talked a lot this month about the value of using a Registered Education Savings Plan (RESP) and government grants to save for your child’s education. While most parents would agree with the importance of education savings, often the real problem is that when dealing with the costs involved in raising children, there is simply no money left to save for education after high school.
Are you stuck unable to afford to start an RESP, but want to somehow get started saving for your child’s education? You may be eleigible to receive $500 from the Canadian government now, and another $100 per year until your child turns 15.
Money is available from the Government of Canada, through Canada Learning Bonds, to help you start saving for your child’s education after high school.
If you start early, your could receieve up to $2,000 (plus interest) in bonds for your child’s education. Unlike Canada Education Savings Grants, you don’t have to put any of your own money into the RESP to get this bond. Plus, an extra $25 will be paid with the first $500 bond to help cover the cost of opening an RESP.
Your child may be eleigible for the bonds if he or she was born after December 31, 2003, and you receive the National Child Benefit Supplement as part of the Canada Child Tax Benefit, commonly known as “family allowance” or “baby bonus.”
For more information on the bonds and how to apply, visit CanLearn.ca.