CESP
Canada Education Savings Program
Canada Education Savings Program (CESP)
is an opportunity for parents in Canada to start saving for their child’s post-secondary education from the time the child is born until age 17. The Government of Canada has reported more than $63.0 billion in registered education saving funds at the end of 2019 with $5.0 billion contributed in that same year.
Assess to post secondary education is a high priority for most Canadians with more than 7 million children are registered in the CESP where more than 53% of those children are currently receiving benefits to pay for their education.
CESP provides2 separate forms of subsidy a Basic Grant and
Additional adjustable Grant
- CESG Basic Grant – available to all families regardless of income level that provide 20% on each dollar spend for a maximum contribution $50,000 toward a child’s education over a 17 year period and receive $7,200 in grant money from the CESP.
- CESG additional adjustable Grant - available to families whose yearly income is less than $49K and adjusted for the number of children in the family where that income not exceeding $95K can receive an additional 10% or 20%. The maximum CESG benefit combines Basic + Additional adjustable grant per child for a lifetime benefit of $7,200
Registered Education Saving Plan (RESP)
In order to qualify for CESG program
your child must have a social insurance number and be registered with a RESP provider in Canada. There are a number of providers you can setup your RESP and submit your application to CESG on your behalf
- Not all Insurance companies can setup RESP the 2 insurers recommend Industrial Alliance and Manulife both carriers can also if require provide financial assistance
- Most Banks in Canada will setup a RESP for your and include financial assistance
- Most mutual fund companies connected with banks and insurance companies will provide mutual fund RESPs and in some case provide DIY support
- Group RESP providers such as Heritgage Scholarship Plan and CESP
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