Importance of Saving for Children’s Post-Secondary Education

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Importance of Saving for Children's Post-Secondary Education

The Government of Canada offers education savings incentives – the Canada Learning Bond. The $500 Bond is deposited directly into the RESPs of eligible children, some of whom may qualify for an additional $100 per year, up to a maximum of $2,000. Parents, or primary caregivers, do not have to contribute any of their own money to receive the Bond.

Families can also apply for the Canada Education Savings Grant. The federal government adds between 20 and 40 percent to an RESP, depending on net family income and contributions, up to a maximum of $600 per year, contributing a lifetime maximum of $7,200 per child. By the end of 2013, over 47% of children under the age of 18 had received the Canada Education Savings Grant.

Financial Literacy Month takes place annually during the month of November, led by the Financial Consumer Agency of Canada, and aims to promote the importance of financial planning and financial literacy for Canadians.

Quick Facts

  • Omega received an investment of $749,000 from the Government of Canada to set up its SmartSAVER project.
  • Since the introduction of the Canada Learning Bond, the Government of Canada has provided Canadian families with nearly $500 million for their children’s post-secondary education.
  • Over 600,000 children have received the Canada Learning Bond since its creation.
  • Over 350,000 students withdrew $2.74 billion from their RESPs in 2013—representing an increase in the number of students of 8.7% over 2012.

Source: http://news.gc.ca/web/article-en.do?mthd=tp&crtr.page=5&nid=905189&crtr.tp1D=1

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