EN - Money

Canadian Parents Can Get Up To $7.2K For Their Kids By Putting Money Into A Savings Plan

The feds want to help parents to invest in their child's future.💰

Canadian Parents Can Get Up To $7.2K For Their Kids By Putting Money Into A Savings Plan

The federal government is offering eligible parents up to $7,200 to help them save for their child's future education.

If you haven't heard of it before, the Canada Education Savings Grant (CESG) is money that the government adds to a child's savings plan, to help them pay for post-secondary education when they're old enough.

The funding is available until the end of the calendar year that a child turns 17, although there are eligibility requirements for teens aged 16 and 17.

To qualify for the money, Canadian parents must open a Registered Education Savings Plan (RESP), which are specifically designed to save money for a child's future.

The CESG adds 20% to the first $2,500 made in contributions to an eligible savings plan each year, which means it's possible to get up to $500 for each year the account is open.

Exactly how much you get from the CESG depends on the contributions made into the account each year. If no money is put into the account during any given year, the plan holder is allowed to make up contributions in future years.

A child may also be eligible for an additional 10% to 20% from the CESG in their account, depending on their primary caregiver's income.

Who is eligible?

To qualify for the money from the feds, an adult must contribute to a child's RESP before the end of the calendar year in which they turn 15 years old.

It's possible to get it for teens aged 16 and 17 too, although there are additional terms.

The child must be a Canadian resident, have a valid Social Insurance Number and have an eligible RESP in their name.

Eligible low-income families who are unable to regularly contribute to a RESP can still access thousands of dollars in federal support for their kids' futures.

The Canada Learning Bond — also known as the CLB — offers up to $2,000 towards post-secondary education, without requiring any personal contributions from the account-holder's caregivers or family.

This article’s cover image was used for illustrative purposes only.

People in B.C. who have been displaced or left jobless by the extreme flooding should apply for employment insurance benefits — even if they wouldn't normally be eligible.

That was the message from Employment Minister Carla Qualtrough on Sunday as the feds announced that they are waiving the requirement for people to show a record of employment to claim the benefits.

Keep Reading Show less

Eligible parents in Canada could qualify for up to $2,000 from the federal government, simply by opening a savings plan for their kids.

The Canada Learning Bond — also known as the CLB — is money that the feds add to a Registered Education Savings Plan (RESP) for children from families with a low income.

Keep Reading Show less

Feds Say Canada's COVID-19 Benefits Are Likely To Cost $7.4 Billion Over The Next 7 Months

This includes the new Canada Worker Lockdown Benefit.👇💰

The federal government says the cost of extending Canada's COVID-19 benefits could exceed $7 billion between October 2021 and May 2022.

Speaking on October 21, Deputy Prime Minister Chrystia Freeland announced details of the Canada Worker Lockdown Benefit in addition to proposing extensions to both the Canada Recovery Sickness Benefit and the Canada Recovery Caregiving Benefit.

Keep Reading Show less

Canadians Who No Longer Qualify For EI Can Start Claiming The CRB & Here's How It Works

Eligible applicants can claim $600 per two-week period.👇💰

The federal government is reminding Canadians who are no longer eligible for Employment Insurance (EI) benefits that they may qualify for the Canada Recovery Benefit (CRB).

As of September 12, 2021, EI claimants who have used up all of their weeks of regular benefits may be able to receive the CRB, provided they meet the eligibility criteria.

Keep Reading Show less