Watch for the Canada Learning Bond Letter
Sep 20, 2017
Did you know? The Government of Canada will contribute to a child’s RESP through the Canada Learning Bond (CLB) and yet – only 33% of eligible children have benefitted from this free money. That’s why, throughout the year, the government sends letters to a subset of eligible families who have not yet received CLB. Letters are going out this week so check your mailbox – it’s an important message that your child could benefit from.
Planning ahead for your child’s education is the key to being able to provide the opportunity to continue studies after high school. To help modest income families get started with their education savings, the CLB provides an initial contribution of $500. Additional contributions of $100 are automatically made to the RESP each year until the child turns 15, to a maximum of $2,000.
No personal contributions to an RESP are required to receive CLB, making it easy to start saving when your child is young. In fact, most families who have received CLB do
start saving some of their own money once a plan is opened*.
Young families are the most likely to qualify for the Canada Learning Bond as they are in the early years of their work life and thus may have lower household incomes. Learn more about the eligibility criteria for CLB
and to see whether this is a good time for you to apply.
*Table: Annual Personal Contribution Rate and Average Personal Contributions for Beneficiaries in Receipt of the Canada Learning Bond (CESP Annual Statistical Review, October 2016).