Guide to Canadian Education Savings Grant


Canadian Education Savings Grant

A very profitable investment that enables you to save for your child’s post-secondary education and pave the way for their desired job is a registered education savings plan, or RESP. The large government incentives that come with this savings vehicle are only one of its numerous benefits. Among these is the CESG, a grant that the Canadian government provides to all families, regardless of their financial situation. You might receive up to $7,200 lifetime per child with this education grant, so be sure to take advantage of this chance!

A few initiatives are available from the Canadian government to assist families in setting aside money for the hefty expense of tertiary education. The Canada Education Savings Grant (CESG) is one such Programme. Employment and Social Development Canada administers the CESG Programme, which assists families in setting aside money for a child’s post-secondary education. Through this incentive-based Programme, the government matches the amount that a family pays to their child’s Registered Education Savings Plan (RESP).

How does the Canadian Education Savings Grant work?

As previously stated, when money is deposited into a child’s RESP account, a grant known as the CESG is given out. Every Canadian kid is entitled to receive at least the basic kid Savings Grant (CESG), which is equal to 20% of yearly contributions made to all qualified RESPs, regardless of their income.

After high school, the child’s education may be partially funded by that money. The funds are redeemable for the cost of attendance for either full-time or part-time studies:

  • University
  • College
  • Trade school
  • Apprenticeship programs
  • CEGEPs (general or vocational college in Quebec)

Keep in mind that the youngster has to enrol in a recognized school.

Who is eligible for the Canadian Education Savings Grant?

The Basic CESG and the Additional CESG are the two grants that are offered. You need to have an open RESP and be contributing to it in order to get started. The CESG contribution will be deposited here by the government. For a kid to qualify for the Basic Canadian Education Savings Grant, they need to:

  • Be a Canadian citizen.
  • Own an active Social Security number (SIN)
  • Obtain the title of RESP beneficiary

Children from low- or middle-class families can be eligible for the extra CESG. The primary caregiver’s adjusted income level will determine eligibility, which may include adding 10% or 20% to the first $500 paid annually. Children can get the CESG until the end of the year in which they turn seventeen. There are several conditions that must be fulfilled in order for a youngster to be eligible for the CESG if they are getting close to the ages of 16 or 17. If these kids fulfill at least one of the following requirements by the end of the year in which they turn 15, they could be qualified to receive it:

  • In any of the preceding four years, a minimum annual commitment of $100 was paid to the RESP and remained there.
  • The RESP receives at least $2,000 in contributions that are not taken out.

The Canadian Education Savings Grant application process

Open an RESP

To be eligible for the Canadian Education Savings Grant, you must apply through your RESP supplier. This is also the location where the government would disburse the money if your application is approved. You can’t begin your application until you have opened a RESP if you don’t already have one, and in order to get the CESG, you have to be actively participating in it.

Gather your personal details

The “subscriber” is the individual who submits an application for the Canadian Education Savings Grant. If this is you, the application form must have your signature, SIN, and your child’s SIN on it. The application may need the completion of a few more paperwork if the subscriber is not the child’s primary carer.

Complete the application form

Your RESP provider must supply you with the Canadian Education Savings Grant (CESG) application form. This form must be filled out completely and returned to your RESP provider, who will then submit it to the Canadian government for approval.

Wait for approval

Your application will be accepted if you qualify for the CESG, and the government will deposit money into the RESP of your choice within 65 days of receiving a contribution.

Children from low- and middle-class homes may be eligible for the additional Canadian Education Savings Grant funding. That implies that, if qualified, an additional 10% or 20% is added to the initial $500 annually donated to a RESP. If you think you could fall into this category, be sure to enrol in both the Canada Learning Bond and the CESG in order to receive the maximum amount of money contributed to your RESP. A youngster may get up to $7,200 in CESG, including the Additional amount. 

Additionally keep in mind that any money put in a RESP increases over time. Ask your bank how you may increase the value of this money. The most crucial component is time: the longer and larger the growth period that money in a RESP has, the more time it has to grow. Completing your taxes annually is crucial, since the government utilizes tax data to ascertain your eligibility for the Canada Learning Bond and the Additional CESG amount for that particular year.

What would happen if your kid skipped school?

Your kid has alternatives for the money that has accumulated in their RESP if they decide not to pursue post-secondary education. First off, the monies in this account are available for 35 years, after which the RESP must be terminated and the funds utilized. The subscriber will receive their money back, and the Government of Canada will receive the Canadian Education Savings Grant payments, if your child hasn’t utilized the money to pay for school by this point.

Any interest that accumulates may be deposited into the subscriber’s Registered Retirement Savings Plan (RRSP) or paid to them (and taxed). The RRSP of their spouse may also receive this payment. Other choices include giving the funds to a specific educational institution or moving them to a child’s Registered Disability Savings Plan (RDSP). You can contact the Super Visa insurance Calgary or your provider to learn more about what occurs when you close your Registered Education Savings Plan.


Even though your child’s post-high school education may seem far off, the sooner you start funding a Canadian Education Savings Grant and considering other options for saving for their education, the better off you’ll be financially when the time comes. To learn more about the scheme, please get in touch with Super Visa insurance Calgary today! Visit now!


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