Canadian Parents Can Get Up To $2K From The Feds By Opening A Savings Plan For Their Kids
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.
The money is there to help cover the costs of a child's studies after they finish high school, whether that's at college, university, a trade school or an apprenticeship program.
Each child can get up to $2,000 from the government added to their savings plan, which includes $500 in the first year of eligibility.
After that, they can get $100 for each year that they're eligible (up to and including the benefit year in which they turn 15).
\u201c\ud83e\uddee Opening an Registered Education Savings Plan (RESP) and starting your child\u2019s education savings is really as easy as Pi (get it, \u03c0?) \n\nWith programs like the Canada Learning Bond, discover how you can grow your RESP \u27a1\ufe0f https://t.co/8FqUoxb4ws #CdnTax #FLM2022\u201d— Canada Revenue Agency (@Canada Revenue Agency) 1668874810
This means, if the account is started on the child's first birthday, they can get $1,500 over 15 years, in addition to the $500 lump sum for the first year of eligibility.
Personal contributions are not required from the parent or child to receive the CLB.
An RESP can stay open for up to 35 years, but the funds within must be used before the end of the 35th year. Individuals who do not continue their education after high school must return any contributions to the subscriber, including any amount added by the feds.
Who is eligible for the Canada Learning Bond?
\u201cEligible families can receive up to $2,000 from the Government of Canada for their child\u2019s post-secondary education savings \ud83d\udcb0\ud83c\udf93. Learn more about the Canada Learning Bond benefit at https://t.co/t5kjJ22jmK\u201d— Region of Durham (@Region of Durham) 1632402012
To qualify, a child must be a resident of Canada, born on or after January 1, 2004, and from a low-income family.
The income eligibility is based on the number of children in the family, as well as the adjusted income of the primary caregiver plus a spouse or common-law partner that lives in the same home.
Full eligibility details can be found on the Government of Canada website.
This article has been updated since it was originallypublished in November 2021.
