For every dollar that family or friends put into a child's Registered Education Savings Plan (RESP), the federal government will add between 20 and 40 cents in Canada Education Savings Grant money, depending on the family's income and the amount that is contributed annually.
If a family has a limited income, and is receiving the National Child Benefit Supplement for their child born after Dec. 31, 2003, they will receive the $500 Canada Learning Bond. In addition, a family who qualifies can get $100 every year until the child turns 15 years old to a maximum of $2,000.
Although there are many other savings vehicles out there, such as the old-fashioned cookie jar or Tax Free Savings Accounts, it's worth remembering that an RESP is the only plan into which the government puts money -- from 20 to 40% -- to help families save based on net family income and on amounts contributed yearly.
For more information call toll-free 1-800-O-Canada (1-800-622-6232), visit your nearest Service Canada Centre, or go online at CanLearn.ca.
