Education Savings Grants
Courtesy of Dynamic Mutual Funds, Posted 09 Mar 2015
The cost of education is expensive and tuition fees, books, accommodation and living costs have been increasing faster than the rate of inflation. For example, between 1993–94 and 2003–04 the cost of studying dentistry quadrupled, while medical tuition costs more than tripled and studying law more than doubled.
One of the best ways to save for your child’s future education is through a Registered Education Savings Plan (RESP). While you save, the government will kick in up to $7,200 through the Canada Education Savings Grant (CESG). Taking advantage of this free money can go a long way to finance your child’s education down the road. Putting aside even small amounts each month will translate into substantial savings later on. When your child does attend a post-secondary institute, all your contributions are passed on to them tax-free and taxes are only paid on the investment growth and grants (often at a much lower tax rate).
Alberta Centennial Education Savings -- Alberta residents only
The province of Alberta also offers provincial support for educational funding. The Alberta Centennial Education Savings Plan (ACES) provides a $500 grant to children of Alberta residents born on or after January 1, 2005. The grant will be paid into an RESP with the child as the beneficiary. A $100 grant may be available for older children. Your advisor can provide you with further details about the ACES and how to apply.