Human Resources and Skills Development Canada

Human Resources and Skills Development Canada

February 23, 2011 15:00 ET

Government of Canada Supports Project that Promotes Saving for Education

EDMONTON, ALBERTA--(Marketwire - Feb. 23, 2011) - To help low- and middle-income families in Alberta improve their financial literacy and money management skills, as well save for their children's education, the Edmonton Financial Literacy Society will launch a new program, Educating the Next Generation.

Mr. Laurie Hawn, Parliamentary Secretary to the Minister of National Defence and Member of Parliament for Edmonton Centre, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development, today announced Government of Canada support for the program.

"Our Government wants young Canadians to succeed in the future and that means helping them get a post-secondary education," said Mr. Laurie Hawn. "That is why we help organizations, such as the Edmonton Financial Literacy Society, to encourage families to save early for their children's post-secondary education and to take advantage of the Government of Canada's education savings incentives."

Through this project, the Edmonton Financial Literacy Society will revise their curricula to include a post-secondary education savings component for low- and middle-income Canadians. The Educating the Next Generation project will demonstrate the long-term benefits of a post-secondary education, with information on RESPs and how to access the Government of Canada's savings incentives.

The Government of Canada helps Canadian families save for their children's education after high school by offering education savings incentives, such as the tax-free Registered Education Savings Plan, Canada Learning Bond and the Canada Education Savings Grant.

This news release is available in alternative formats on request. 

Backgrounder

Today's announcement is an example of how the Government of Canada is working with its provincial and territorial partners, educators, community-based organizations and other stakeholders to make education after high school more accessible and affordable. 

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 savings incentives are administered by HRSDC.

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, up to a maximum of $2,000.

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 on the net family income, an additional grant of 10% or 20% could be added on the first $500 contributed.

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, in order 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, provincial/territorial and municipal governments in the development and delivery of projects. These aim to reach 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 RESPs.

Edmonton Financial Literacy Society's Educating the Next Generation project

Developing community partnerships is a major part of the Edmonton Financial Literacy Society's mandate to support the community and expand the delivery of Financial Literacy courses. Therefore, the Edmonton Financial Literacy Society will revise their curricula to include a post-secondary education savings component.

The Educating the Next Generation project will demonstrate the long-term benefits of a post-secondary education, with information on RESPs and how to access the Government of Canada's savings incentives (Canada Learning Bond and the Canada Education Savings Grant).

The Edmonton Financial Literacy Society will also work with their network and partners to deliver financial literacy and a RESP-related education module to local families.

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