LIFE EVENTS
QUESTIONS

Saving For Education

Q.1. Why should I start to save early?
A.

Money has a greater opportunity to generate interest if you save it in a bank account or otherwise invest it as early as possible. Various government programs will also start to contribute if you save the money in an RESP. These programs may vary depending on the Province that you live in. Over the course of a child’s education these programs can generate a considerable amount of money. Various financial institutions can help you determine the nature and type of investment.

 

Q.2. What is a Registered Education Savings Plan?
A.

A Registered Education Savings Plan (RESP) is a special savings plan that helps you save for educational costs after high school. The Government of Canada will also put money into the RESP as a grant. There are different types of RESPs and you need to choose carefully. There are also different costs associated with different plans. There is no tax on the money you make in these plans as long as it stays in the plan. If monies taken out of the plan are directed to post secondary educational costs then no tax will be paid on the money.

Q.3. What is The Canada Learning Bond?
A.

The Canada Learning Bond (CLB) is a grant offered by the Government of Canada to help parents, friends and family members save early for the post-secondary education of children in modest income families.

Q.4. What other types of savings strategies are there?
A.

There are other savings strategies that can be used including Informal In-Trust accounts, Living Trusts, Juvenile Life Insurance, Tax-Free Savings Accounts and investments that grow money through interest, dividends or profit. A number of different approaches can help you expand your savings.

Q.5. Grants, Bursaries and Scholarships and other Funding
A.

In addition to savings strategies and money generated through employment, there are other sources of funding for education. These include financial gifts, student loans, grants, scholarships and bursaries. Many students also find additional ways to finance their education.

Q.6. Can seniors apply for funding programs?
A.

Many provinces and territories provide discounts for seniors. Check with your ministry or department of education in the province/territory in which you live as well as many institutions enable students to audit courses for a discounted fee...or no fee at all!