When you invest in a child’s education, the government invests in that child, too.

The Canada Education Savings Grant (CESG) is available to any beneficiary who is a Canadian resident who has an RESP. The government of Canada matches 20% of RESP contributions, up to $500 in a year, to a lifetime maximum of $7,200 per child. In other words, by investing around $2,500 a year for 15 years, you could qualify for $7,200 in government grants for your loved one.

There may be additional provincial grants too, depending on your income and province. For example:

• The Quebec government provides 10% on the first $2,500 contributed annually to an RESP by residents of Quebec, up to a lifetime maximum of $3,600. Plus, depending on your family’s income, your child’s RESP might qualify for another 5% to 10% on the first$500 contributed to the RESP each year.
• The government of British Columbia offers a one-time $1,200 grant for children aged 6 years old up to the day before they turn 9 who live in BC and have a qualifying RESP account.
• The Saskatchewan government had been providing 10% on the first $2,500 contributed annually to an RESP by residents of Saskatchewan, up to a lifetime maximum of $4,500. But, as of January 1, 2018, this program is on hold.

Bright Tip: Complete a Saskatchewan Advantage Grant for Education Savings (SAGES) application and submit it to your plan sponsor so it’s ready if and when SAGES is reinstated in the future.