Our family lives on a single income so I know how tight budgets can be for even the basic necessities. For the past few months, I’ve been talking about the importance of contributing to your Child’s Registered Education Savings Plan (RESP), but if there isn’t any money left at the end of the month then you might think that saving and investing in an RESP doesn’t relate to you. But it does!
Read on to find out more about what I learned and enter to WIN 1 of 8 prizes of $2,500!
After six years with an RESP account, I thought I knew everything there was to know about RESPs. You put money in, the government grants you money and you watch your money grow. Simple. What I didn’t know was that even if you don’t make a contribution, your money can grow. Given that 0 + 0 is still 0, I’m sure you’re wondering “Where does the money come from”?
Canada Learning Bond
The Canada Learning Bond (CLB) is available to children who were born after December 31, 2003 and whose families receive the National Child Benefit Supplement. The Supplement is over and above the Canada Child Tax Benefit and is intended for families with a salary of less than $43,953*.
If you opened up an RESP account from a major bank or Heritage Education Funds then, chances are that they had you sign all the necessary paperwork for the Canada Learning Bond and Additional Canada Education Savings Grant (ACESG), submitting it on your behalf.
If your RES, like ours, was opened via another method, the paperwork may not have been completed and you may not have been notified that you had become eligible for grants in future years. For our family, that means that The Kids are eligible for up to $100 each (for the one year we were eligible for NCBS and automatically anytime in the future) as well as a one-time initial contribution of $500. Or, even if you never opened up an RESP, you still might be eligible to receive the grant(s) as you only have to apply once**.
With a $0 contribution on our part, this money will continue to grow until The Kids need to use it.
All you have to do is gather your child’s SIN number and open up an RESP. Find a Heritage Education Fund Representative near you (grants may differ by province) and they can help you and your child realize all that they are entitled to.
Heritage Educations Funds wants to help you and your family with their Annual RESP Draw. Win 1 of 8 contributions of $2,500 towards a Heritage Education Funds RESP plan. Draw date is December 31, 2015.
Are You Receiving All The RESP Grants That You Are Eligible For?
— Journeys of The Zoo (@zoojourneys) December 3, 2015
*This amount is indexed each year based on the rate of inflation.
** Assuming your child is 15 years of age or younger.
Photo Source (first picture): Gracey
Journeys of The Zoo is a Heritage Funds Ambassador and received compensation in exchange for sharing our story.