Success Stories
Varun’s parents have around 10 years to save up. They open an RESP savings account to receive the free Government grant money. They also invest some money every month in a GIC, which grows a little faster.
Varun is 7 years old. He moved with his parents to Canada one year ago so that he could have the best opportunities for education. Shortly after arriving, the whole family went to Service Canada to get a SIN for each of them for free. While Varun’s parents were at the bank one day, the teller recommended that they open an RESP. They made an appointment with an account manager and learned that their son is eligible for the Canada Learning Bond (CLB) because he was born after 2004, and because they receive the National Child Benefit Supplement.
Varun received $500 in his account one month after opening the Registered Education Savings Plan (RESP) and will receive an additional $100 every year after that until he is 15. The following year, his parents decide to start adding their own money as well. They go back to their account manager and choose to invest $500 through a GIC. Every year after that, Varun’s parents manage to contribute $240 more to his RESP by setting aside a $20 bill every month. The Government matches this money by 40% through the Additional Canada Savings Education Grant (ACESG). Since the money grows with interest, Varun’s RESP is really adding up. Varun is talking about being a dentist. By the time he’s 17, he could have almost $6,000 ready for university!
Sharon is helping save for her granddaughter. She opens an RESP savings account and receives the free CLB money. She also receives the ACESG when she adds a little of her own money too.
Sharon’s granddaughter, Emma is eight months old. She wants to give Emma a better future than she was able to give her own kids. She is thinking about opening up an RESP for Emma, but doesn’t have a lot of extra money to spare.
Sharon finds out that Emma can receive the Canada Learning Bond (CLB) – free money from the Government for an RESP. She goes to a bank down the street with Emma’s mom and opens up an RESP savings account. Emma immediately gets $500! This doesn’t affect Sharon’s disability payments or Emma’s baby bonus. Emma will continue to receive $100 every year until she is 15, if she remains eligible. This will add up to $2,000 for Emma’s education!
Sharon decides to give up buying one coffee each week so she can use the money she saves to top up Emma’s RESP. This means she can put in $7.90 extra every month. She finds out that the Government will match this money by 40% through the Additional Canada Savings Education Grant (ACESG). This means that the Government will put in an extra $3.16 every month.
Since Sharon started saving early, she will get a lot of interest on top of all her savings. When Emma is 18, she could have over $5,000 in her RESP for her schooling!
Megan is a single mom with no extra money to put aside in savings. She opens an RESP savings account and applies for the CLB to receive the free Government grant money.
Megan is a single mother who had her son, Liam, when she was 18. When Liam is 9, Megan learns about the Canada Learning Bond (CLB) from a friend who lives in her building. She decides to open an RESP for Liam so that she can support him in his education to get a good job.
Megan calls a bank near her and makes an appointment. At the appointment, the advisor tells Megan that Liam is eligible for the Canada Learning Bond because he was born after 2004, and because they receive the National Child Benefit Supplement (‘family allowance’ or ‘baby bonus’). Megan tells the advisor that after paying for rent, utility bills, and groceries, there is just nothing left over to add to Liam’s RESP. To her relief, the advisor says that’s ok! She will receive the free Government money anyway.
Liam receives $500 in his account right away. Plus, since he has been eligible since birth, he receives an additional $100 for every year he was alive even though they just found out about the bond. (These are called “retroactive payments.”) If Liam continues to be eligible, he will receive $100 each year until he is 15 years old. This will total $2,000 in free money from the Government!
Liam wants to be a teacher when he grows up. Since the money from the Government gains interest, when Liam is ready to go to college, he could have $2,200 saved up, completely free!
How do I apply for an RESP?
To open an RESP, visit a licensed provider
Learn about available providers Learn about what you need to open an RESP accountFrequently Asked Questions
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