Saving for your child's education

Just about everybody believes in the benefits of a post-secondary education. But, fewer than half of the Canadian parents who were surveyed in 2007 had ever looked into saving for their children’s education.

Here’s what they would have found out if they had.

Through the Canada Education Savings Grant, the federal government will provide grants (up to $9,220) to families in all income brackets who contribute to a Registered Education Savings Plan (RESP). RESPs are special savings plans that are designed to assist with the costs of post-secondary education—including college, university, trade schools and overseas schooling.

Low income families can also receive up to $2,000 for each child born after 2003 through the Canada Learning Bond (CLB) program, even if they’re unable to contribute anything to an RESP themselves. To get the Canada Learning Bond, a parent or guardian needs to open an RESP and have their RESP provider apply for the Canada Learning Bomd for them. (Follow the steps below).

To maximize your savings, open an RESP early.

Here’s how to get started:

1. Get a Social Insurance Number for your child. Find out how here

2. Open an RESP (and apply for the Canada Learning Bond if you are eligible). Call your financial insititution or start your online RESP application here.


The benefits of an RESP aren’t simply financial. Having an education savings plan can show your child that you value learning, and that you expect that your child will continue his or her studies beyond high school.

If you're looking for more information about family finances, the Canadian non-profit organization Investor Education Fund has helpful and easy-to-understand advice on a wide range of topics in their money and families section, as well as great resources for teaching your kids about money and finances at their website www.inspirefinanciallearning.ca

 

This content was prepared and reviewed by the City of Greater Sudbury and its partners. However, it should not take the place of advice from your health care provider or other professionals working with you and your child. 

Notice a broken link or an error or omission in this content? Email beststart@greatersudbury.ca to let us know.