Registered Education Savings Plan (RESP)
Canadian ProgramsA tax-sheltered savings account for a child's post-secondary education. The government adds grants (CESG and CLB) on top of your contributions. When the student withdraws for school, the growth and grants are taxed in their hands — usually at a very low rate.
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Canada Education Savings Grant (CESG)
A federal grant that adds 20% to the first $2,500 you contribute to a child's RESP each year, up to $500 per year and $7,200 lifetime. Lower-income families may receive additional CESG. It is free money you get just for saving for a child's education.
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Canada Learning Bond (CLB)
A federal grant of up to $2,000 deposited into a child's RESP for families with lower incomes. No personal contribution is required — you just need to open the RESP and apply. Many eligible families do not claim it simply because they do not know it exists.