While my kids’ student clocks are ticking as back-to-school season looms in, there are two realities that linger in my mind when it comes to their future.
The first one is that Kids Dream BIG. Even if my daughter dreams of becoming a princess someday, and at the back of my mind she might dream of becoming something else as she grows older, I am sure that it is still going to be a noble ambition. What I can do with this now is to guide and support my children’s dreams and give them the freedom to explore the world around them so that they can confidently decide on what they desire in life.
So the second reality I’m dealing with is this: Education costs BIGGER. Not just the tuition fees, but also school supplies, food, accommodation, transportation, technology, and other necessary resources. Yes, it takes hard work to turn dreams into reality. But hard work doesn’t have to start from our children alone. We as parents can do something NOW, while they’re still young as they dream big. And that is to save smart for their future, especially in case my kids’ dreams require post-secondary education, which can open doors for more options.
While my husband and I are serious about our kids’ RESP (Registered Education Savings Plan) accounts, I am also concerned about our Canadian youth, particularly those from low-income families. The lack of awareness about our children’s entitlement to higher education is a sad reality, mainly because of false beliefs that one cannot afford to start an RESP. But did you know that our Federal Government offers RESP at zero cost (read: $0, no opening costs and contribution at all) through its Canada Learning Bond (CLB)?
Fortunately, there is SmartSAVER to further inform and assist families in opening an RESP at $0 to rightfully access the Canada Learning Bond. SmartSAVER is a non-profit initiative by the Omega Foundation, based on independent research findings that having family savings increased the likelihood of children attending and graduating from post-secondary education. Here are some things we should all know about the CLB, RESP, and SmartSAVER:
The Canada Learning Bond (CLB):
- Qualifies children born on or after January 2004, with net family income of $44,701 or less
- Provides FREE MONEY with initial deposit of $500 from the Federal Government, and then $100 for each succeeding year up to a maximum of $2,000
- Does not require any amount of contribution to claim the Bond
- Is a retroactive grant
A Registered Education Savings Plan (RESP):
- Is the receiving account for the CLB, as well as matching voluntary contributions (through the Canada Education Savings Grant) if any
- Can be opened for $0 (no start-up, enrolment or annual fees), and with $0 contribution
- Is tax-sheltered, meaning it is tax-deductible
- Can be used in many post-secondary education options, full-time or part-time, in or outside Canada: college, university, trade school, apprenticeship, CEGEP
- Requires Social Insurance Number (SIN) of the child and of the primary caregiver
- Can be opened by anyone for the child: parent, or any relative, caregiver, or friend
How SmartSAVER can help:
- It serves as convenient online venue for CLB application, which can take as easy as 10 minutes
- Partners with six leading financial institutions, where families can choose one to open the RESP: BMO Bank of Montreal, Meridian Credit Union, RBC Royal Bank, Scotiabank, TD Canada Trust, Vancity
- Offers FREE information and resource on RESPs and the CLB
If you know a family with children who are qualified for the CLB, or if your own child is one, or if you want to help a qualified child, this is your chance to share with them the good news to help their dreams and education savings turn into reality! Visit SmartSAVER.org to get you started and don’t forget to enter their twitter contest!
