The Canada Learning Bond is an additional federal grant for Canadian families that can use an extra boost. The government puts $500 into the RESP of children who live in a lower-income household at the time the RESP is opened or in the first year that the family qualifies. The CLB is similar to the Canada Education Savings Grant (CESG) in that the money must eventually be used on costs related to attending a post-secondary education (college, university, trade school or another eligible training program).

And it doesn’t stop at that initial $500; for every additional year your family qualifies, the government will add $100 to the RESP. All in all, the CLB could add up to $2,000 to a child’s RESP.

To qualify, the child’s household income after taxes and adjustments has to be less than or equal to certain amounts outlined on Don’t know what an after-tax household income is? It’s okay—we got you. It’s the amount on line 236 in your tax return and that of your spouse. Remember, the household income that matters is the one for the child’s household. So if an RESP is opened by a grandparent it could still qualify for the CLB, as long as the child’s parents or primary care givers meet the low-income requirements for the grant.