Human Resources and Skills Development Canada

Human Resources and Skills Development Canada

February 25, 2011 11:00 ET

Government of Canada Supports Project that Promotes Saving for Education

WINNIPEG, MANITOBA--(Marketwire - Feb. 25, 2011) - Low-and middle-income families in Manitoba will be able to improve their financial literacy and money management skills. Today, the Honourable Steven Fletcher, Minister of State (Democratic Reform), on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development, announced funding from the Government of Canada to Supporting Employment and Economic Development Winnipeg for its project entitled Financial Foundations for Education Savings.

Through partnerships, Supporting Employment and Economic Development Winnipeg will engage participants to open Registered Education Savings Plans and help them access education savings incentives such as the Canada Learning Bond and the Canada Education Savings Grant.

"Our government believes that access to post-secondary education is important to securing future opportunities for young Canadians," said Minister of State Fletcher. "This investment will help 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 a post-secondary education, and 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 is operated by Human Resources and Skills Development Canada (HRSDC). It is an important component of the Government of Canada's commitment to continue to support Canadians and secure long-term economic growth, which includes programs that help Canadian families save to pursue educational opportunities after high school. 

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, 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 of these savings incentives are administered by HRSDC.

The Canada Learning Bond

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

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 Supplement, up to the age of 15, for a maximum of $2,000.

The Canada Education Savings Grant

The Canada Education Savings Grant offers 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 Grant is calculated as a percentage of contributions paid into an RESP. Regardless of their family income, Canadians can receive a grant of 20 percent on the first $2,500 contributed to an RESP. Furthermore, depending on the net family income, additional grant money of 10 or 20 percent could be added on to the first $500 of contributions.

Education Savings Community Outreach

The Education Savings Community Outreach 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, and provincial/territorial and municipal governments in the development and delivery of projects that aim at reaching those at risk of not receiving the Canada Education Savings Grant and Canada Learning Bond 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.

Supporting Employment and Economic Development Winnipeg

Over a three-year period, Supporting Employment and Economic Development Winnipeg—in partnership with Westoba Credit Union Ltd. and Assiniboine Credit Union Ltd.—will target low- and middle-income families to help them acquire a better understanding of RESP savings and Canada Education Savings Program incentives, and possess enough financial literacy to make informed decisions about saving for post-secondary education. This project will also help participants overcome barriers to opening RESPs.

Supporting Employment and Economic Development Winnipeg will train the employees of other community-based organizations to deliver RESP information to their clients. The project also aims to develop partnerships with 16 other local enablers that have expertise in working with Aboriginal community members and recent immigrants to deliver the Financial Foundations for Education Savings module.

In addition, Supporting Employment and Economic Development Winnipeg will build on and continue the successful best practices that were developed and implemented during its previous experience as a local enabler for Social and Enterprise Development Innovations' My Child's Future project.

The Financial Foundations for Education Savings project has a provincial scope and will reach communities within the counties of Winnipeg and Portage la Prairie, the Village of Cartwright and the rural municipalities of Roblin and Brandon.

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