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Posted 6/15/2018

I am a fan of the RESP. You put money into it and the government puts in 20% up to $500 per child per year(e.g. if you put in 2,500 they add 500). They also back pay one year. So if you missed last year no problem you can put up to $5,000 in your son or daughters RESP and the government will put in 1,000. Other grants are available when you open an RESP. They may contribute more than 20% on your first $500, up to 40% dependent upon your income.

There is also the Canada Learning Bond with a lifetime maximum of $2,000 that gives you 500 for the first year of your child's life and 100 every year after that until you reach 2,000 or income increases above their limits. They also back pay so if you start an RESP when your son or daughter is 3 as an example he'll get 700 to start. Another nice thing about the Canada Learning Bond is that most companies will allow you to open an RESP without putting any money into it and if you qualify for the CLB you still get the grant! So even if you don't have any money today to be putting away in your children's education fund, start one up and let the CLB grow. Every little bit helps!

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