Applying for government grants
An RESP is the best way to save for post-secondary education because contributions are eligible to receive government education grants. Applying for government grants couldn’t be easier. But before you can apply, you’ll need to determine which grants are available to you.
Each year, contributions of up to $2,500 earn 20% with the Canada Education Savings Grant (CESG), or up to $500 per child per year. Plan holders who have not contributed the full $2,500 in previous years will have ‘unused CESG’ that can carry-over for 3 years for as much as $500 more each year. Making additional contributions is helpful if an RESP is opened a little late, or as a means of getting closer to taking full advantage of the $7,200 available.
All Canadians can apply for the Canada Education Savings Grant (CESG). Depending on your financial situation and province, additional grants can enhance the value of an RESP even further. Knowledge First Financial is registered to collect all available government education grants.
Canada Learning Bond
The Canada Learning Bond can provide up to $2,000 towards your education savings, but only those who receive the National Child Benefit Supplement (NCBS) can qualify. Do know, however, that the Government of Canada reviews your income annually, so even if you don’t qualify this year, you may be able to benefit down the road.
The British Columbia Training and Education Savings Grant
The British Columbia Education Savings Grant (BCTESG) can add $1,200 to your education savings, but this grant is only available to residents of British Columbia and only children who are between the ages of 6 and 9 can apply if they were born after July 1, 2006. So if your child isn’t old enough this year, do your best to apply when the timing is right.
Here are a few things to remember when applying for federal and provincial grants:
| Program |
Amount |
Lifetime Amount Per Child |
Eligibility Requirements |
| Canada Education Savings Grant (CESG) |
- 20% of first $2,500 contributed each year
- Carry forward unclaimed CESG from prior years to a maximum of an additional $500 each year
|
$7,200
[CESG +A-CESG] |
|
| Additional CESG (A-CESG) |
- An extra 10% or 20% of first $500 contributed each year, depending on income
|
|
- Based on income level (reviewed annually)
|
| Canada Learning Bond (CLB) |
- A first payment of $500 plus $100 each year until age 15, as long as the child continues to qualify
|
S2,000 |
- Families qualified to receive the National Child Benefit Supplement (reviewed annually)
|
| British Columbia Training and Education Savings Grant (BCTESG) |
|
$1,200 |
- British Columbia residents only for children between the ages of 6 and 9
|
| Quebec Education Savings Incentive (QESI) |
- 10% of first $2,500 contributed each year
|
$3,600
[QESI & A-QESI] |
|
| Additional QESI (A-QESI) |
- An additional 5% or 10% of the first $500 contributed each year
|
|
- Quebec residents only
- Based on income level (reviewed annually)
|
| Saskatchewan Advantage Grant for Education Savings (SAGES) |
- 10% of first $2,500 contributed each year
|
$4,500 |
- Saskatchewan residents only
|