Saving for Your Child’s Education
Posted on February 25th, 2019
It’s no secret, post-secondary education comes with significant costs. In fact, many families wonder how much they need to save and how soon they need to begin. To help get started, the Government of Canada offers families two education savings incentives.
- Canada Education Savings Grant: The government contributes up to 20 per cent on the first $2,500 in annual personal contributions to a Registered Education Savings Plan.
- Canada Learning Bond: Available for eligible children from low-income families born in 2004 or later. The government provides an initial payment of $500, plus $100 for each year of eligibility, up to age 15, for a maximum of $2,000—personal contributions are not required.
Once that child enrols in post-secondary education—an apprenticeship program, trade school, college or university—the money saved can be used to pay the associated expenses. These include tuition, housing, transportation, textbooks, equipment and supplies. So, while it’s never too late to begin saving, just a small contribution each year can translate into substantial saving later.
For more information visit the Government of Canada’s Education Savings website.