Human Resources and Skills Development Canada

Human Resources and Skills Development Canada

November 12, 2010 10:00 ET

Government of Canada Encourages Education Savings by Canadian Families

CLINTON, ONTARIO--(Marketwire - Nov. 12, 2010) - Low- and middle-income families in southern Ontario will improve their financial literacy and money management skills which will help them save for their children's post-secondary education. Mr. Ben Lobb, Member of Parliament for Huron-Bruce, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development, today announced the launch of the Rural Response for Healthy Children's financial management's project.

With the support of partners such as banks and financial institutions, Rural Response for Healthy Children will encourage participants to open Registered Education Savings Plans and help them access education savings incentives including the Canada Learning Bond and the Canada Education Savings Grant.

"Our government believes that access to post-secondary education is essential to securing future opportunities for young Canadians" said Mr. Lobb. "This investment will encourage families to save early for their children's future education."

The Government of Canada provides a range of supports to help young Canadians obtain post-secondary education, in order to assist them in acquiring the skills and training they need to get jobs and prosper in the economy of the future.

This news release is available in alternative formats on request. 

Backgrounder

The Canada Education Savings Program (CESP) is operated by Human Resources and Skills Development Canada (HRSDC). The CESP is an important component of the Government of Canada's commitment to continue to support Canadians and secure long-term economic growth, which includes a range of programs that support Canadian families to save for educational opportunities after high school. 

The Government of Canada is working with its provincial and territorial partners, business and labour representatives, educators, community-based organizations and other stakeholders to make education after high school more accessible and affordable, so that Canadians can pursue learning opportunities. 

Recognizing the challenges that low- and middle-income families may face in saving for an education after high school, the Government of Canada established the Canada Education Savings Grant and the Canada Learning Bond. Both incentives are administered by HRSDC.

The Canada Learning Bond

The Canada Learning Bond (CLB) is a grant available to children who were born after December 31, 2003, and whose families receive the National Child Benefit Supplement (NCBS).

The initial grant is a $500 payment made into a child's Registered Education Savings Plan (RESP). Additional grants of $100 are paid during each year that a child remains eligible for the NCBS, up to the age of 15, for a maximum of $2,000.

The Canada Education Savings Grant (CESG)

The Canada Education Savings Grant (CESG) provides an incentive for families to save for a child's education after high school by providing a grant directly into a child's RESP. The CESG is calculated as a percentage of contributions paid into an RESP. Regardless of their family income, Canadians can receive a grant of 20% on the first $2,500 contributed to an RESP. Furthermore, depending of the net family income, additional grant money of 10% or 20 % could be added on the first $500 of contributions.

Education Savings Community Outreach

The Education Savings Community Outreach (ESCO) contribution funding program was launched in 2005 as an important component of the Canada Education Savings Program outreach strategy, to inform Canadians of the existence of the Canada Learning Bond and other education savings incentives.

The initiative supports local, regional, national and umbrella non-profit organizations, post-secondary institutions, professional organizations, and provincial/territorial and municipal governments in the development and delivery of projects that aim at reaching those at risk of not receiving the CESG and CLB benefits to which they are entitled. It also raises awareness of the benefits of saving early for children's post-secondary education through an RESP.

Rural Response for Healthy Children

Over a three-year period, Rural Response for Healthy Children will work with its network of 20 local community-based organizations to collaborate on the creation of financial literacy modules – Financial Management Phase Two − Investing in the Future.

The project is mainly regional in scope and will reach the communities within the counties of Huron, Perth, Lambton, Grey, Bruce, and some of Middlesex, Ontario.

Financial Management Phase Two − Investing in the Future is a financial literacy program that helps low- and middle-income families with young children to increase their knowledge of savings and investment options for their children's future.

Through partnerships with professionals from banking and investment institutions, Rural Response for Healthy Children developed this program which engages participants in group sessions to build trust, eliminate barriers and provide an enriching environment where knowledge is shared and attitudes towards PSE savings are changed. The project will help these families to open Registered Education Savings Plans (RESPs) and access savings incentives such as the Canada Learning Bond (CLB) and the Canada Education Savings Grant (CESG).

For more information about the Canada Education Savings Grant and the Canada Learning Bond, visit www.CanLearn.ca or call toll free 1 800 O-Canada (1-800-622-6232), TTY: 1-800-926-9105

Contact Information

  • Office of Minister Finley
    Michelle Bakos
    Press Secretary
    819-994-2482
    or
    Human Resources and Skills Development Canada
    Media Relations Office
    819-994-5559