Every developed country has a finger on the pulse of their nation. They want to claim the title of number one when it comes to education. There are many ways to dissect this goal. Are we talking about the quality of the education of the schools, colleges, and universities teach? Are we talking about the training that is available to further the teaching of a young professional to fine-tune his skills and allow him to become the best in his chosen field? Perhaps we are simply speaking of the percentage of children who enter the school system and then go on to advanced education. In all of the above scenarios, Canada continuously ranks in the top three.
Financing for the future
Saving for a child’s future education while you are raising them and taking care of their childhood needs is not an easy task. The Canadian government has programs in place that not only help you save but you do so tax-free. While you are probably familiar with the Canada Student Loan, there are many other benefits that you may not be aware of.
RESP
The Registered Education Savings Plan (also known as) RESP is a great way to save money for your child’s education and to reap the benefits of “free money” from the government while you are saving. Here are the basics:
- Opening an RESP account for your child allows you to acquire Canada education savings grants.
- The federal government matches your contributions by 20% (limits apply).
- Some provinces offer additional grant money on top of the federal grant.
- The income earned in an RESP is tax-sheltered.
- If the student is from a low-income family, the government will deposit money into the RESP that is opened in their name by way of a Canada Learning Bond. Note: if the student decides not to further their education and training after school, the Canada Learning Bond money will be returned to the government.
Student Grants Ontario
Most of us know about scholarships and have at least a passing knowledge of grants and how they work. However, you would be hard-pressed to find a place that has more knowledge and more “connections” than the Ontario Student Assistance Program (OSAP). You could qualify for money that you do not have to pay back. This could include:
- bursaries
- scholarships
- work-study programs
- emergency funding
- self-funding
- summer employment opportunities
- Bursaries
- Bank loans
- Student awards
CESG
CESG stands for Canadian Educationals Savings Grant. This is a grant that is paid directly into the RESP account of a Canadian child specifically to assist them in gaining a higher education.
These are all sources of money you don’t have to pay back. Do not wait. If you require financial help begin getting funding now. There are laws that allow you to transfer money into a different account in the event that you have more than one child with an account and only one of them does not want to go to school. There are taxes and penalties to pay if you withdrawal the funds early. Canada takes the education of the future of the nation seriously. The give you incentives to get on board with them and secure the future of your child. A good education is good for the person, the family, and the community and it takes everyone working together to make that happen.
