The Canadian government is deeply concerned about the education of its people and deeply invested in educating each and every child in Canada. That is why it offers the Canada Education Savings Grant: a program that contributes funds to any registered education savings plan. Individuals and their families are charged with the responsibility of founding and funding Registered Education Savings as heritage education funds plans. The government echoes their savings efforts and only contributes in direct proportion to what the plan owners contribute. The education savings plan is very important to Canadians who struggle to gain access to apprenticeship programs, CEGEP, trade schools, colleges or universities.
The savings grant is great because it is not binding to specific individuals. The law encourages anyone to register an education savings plan for the children whom they would rather sponsor. You don’t have to be a parent to open a Registered Education Savings Plan. The government of Canada also pays special consideration into the economic status of the grant’s beneficiaries. If their parents or families seem less able to afford educational costs, the program is likely to increase its contributions.
The grant pays out at least 20 percent of the total contributions made into a Registered Education Savings Plan. However, the contributions are constricted by a glass ceiling of 2,500 dollars. Low-income families receive large grant amounts. In their cases, they receive a 40 percent markup of their initial deposits of up to 500 dollars. Over and above that, they receive 20 percent increments of extra deposits that are limited up to the 2,500 dollars. For every beneficiary of the grant, one cannot receive more than 7,500 dollars over a lifetime.
Statistics indicate that the savings grant coupled with the Registered Education Savings Plan has worked well to increase the level of educational access to Canadians. Since 2013 when the first genuine efforts to enforcing these strategies were made, over 47 percent of Canadian children ceased the empowering opportunity. According to the Federal Government of Canada, its ingenious strategy to encourage Canadians to invest in education has helped close to five million beneficiaries. The accounting bodies of the education sector report that the Canada Education Savings Grant has contributed over eight billion dollars.
Not just everyone can be a beneficiary of the education savings grant. The grant is managed by clear regulations that limit people over 17 years from accessing it. The regulation stipulates that when beneficiaries lose their eligibility immediately when the year within which they turn seventeen ends. Other eligibility conditions that are demanded of interested beneficiaries include:
• Residency in Canada.
• Valid social insurance numbers.
• Registered Education Savings Plans in their names.
• Registering request for access to the grant deposits.
Parents should take advantage of this brilliant and generous empowerment strategy that the government adopted for its people. It is honorable and smart to invest in the future by educating our children. The grant is a brilliant way for families to start saving up for their children’s education because it is tax-free and grant-supported.