Don't take government grants for granted

When it comes to saving for a child’s education, there are many savings options available to you including non-registered accounts, Tax-Free Savings Accounts (TFSAs) and Registered Education Savings Plans (RESPs). Arguably, each type of investment vehicle has its own merits. As a tax-sheltered savings vehicle that is registered with the federal government of Canada, one of the key advantages of having an RESP is access to government education savings grants—basically, government incentives to encourage you saving towards a child’s post-secondary education.

These education grants, offered by the Canadian government and some provincial governments, are a unique feature of RESPs and can help you reach your savings target through additional funds, as well as by motivating you to maintain a savings discipline.

Let’s take a closer look at federal and provincial government grants so that you can be sure you are maximizing the amount that your child is entitled to.

CANADA EDUCATION SAVINGS GRANT (CESG)

  • The federal government matches 20% of the first $2,500 contributed to your child’s RESP each year up to lifetime maximum of $7,200. The amount of grant your beneficiary receives is based on the contributions you make and any carry-forward room you may have
  • Families with an annual income below certain income levels can collect CESG sooner - an additional 10% to 20% CESG on the first $500 they contribute each year they qualify
  • For more information on the CESG visit here

QUEBEC EDUCATION SAVINGS INCENTIVE (QESI)

  • The Quebec government matches 10% of the first $2,500 contributed to your child’s RESP each year up to lifetime maximum of $3,600. The amount of grant your beneficiary receives is based on the contributions you make and any carry-forward room you may have
  • Families with an annual income below certain income levels can collect QESI sooner –

an additional 5% to 10% CESG on the first $500 they contribute each year they qualify

  • For more information on the QESI visit here

SASKATCHEWAN ADVANTAGE GRANT FOR EDUCATION SAVINGS (SAGES)

  • The Saskatchewan government matches 10% of the first $2,500 contributed to your child’s RESP each year up to lifetime maximum $4,500 paid into the RESP of an eligible beneficiary who is a resident of Saskatchewan
  • The amount of grant your beneficiary receives is based on the contributions you make and any carry-forward room you may have
  • For more information on SAGES visit here

BRITISH COLUMBIA TRAINING AND EDUCATION SAVINGS GRANT *

  • One-time, lump sum education grant of $1,200 paid into an RESP for any B.C. resident child who turns 6 years old
  • No matching or additional contributions are required to receive the grant
  • For more information visit here

To learn more about how you can transform the power of a CST RESP into a long-term savings vehicle for your child’s post-secondary education, contact a CST Sales Representative today. Visit us at www.cst.org, www.facebook.com/cstconsultants and www.twitter.com/cstconsultants.

Canadian Scholarship Trust Plan offers 3 types of RESPs: a Group Savings Plan, a Family Savings Plan and an Individual Savings Plan. Canadian Scholarship Trust Plan is only sold by Prospectus. Investors should read the Prospectus before making an investment decision because it includes important detailed information.You can get copies of the Prospectus from www.cst.org or by calling 1.877.333.RESP(7377).