Does your family get the National Child Benefit? If so, you may get extra money for your RESP. This money comes through the Canada Learning Bond program. It applies to most families that have:
• Incomes under $37,178 a year; and
• Children born after December 31, 2003.
How much money can I get?
• $500 for each child at birth.
• $100 for each child, until age 15, for each year the family gets the National Child Benefit.
• $25 to cover the costs of opening an RESP.
What if your family does not qualify for the Canada Learning Bond at the time a child is born?
• You can start later if things change.
• You will also get the $500 start-up payment.
How does the grant make my money grow faster?
Let’s say your child qualifies for the grant each year from birth. By the time the child turns 15, you will have $2,000 from the Canada Learning Bond in your RESP. If the money grows by 5% a year, you would have more than $3,300 by the time your child turns 18. If you have added some of your own savings along the way, you will also get the grant money, so your savings will grow even more.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.
