When you contribute to an RESP, the government will match up to 20% per year up to a maximum of $500.00 per year.  The match or grant is called the CESG - Canadian Education Savings Grant. Did you know that if you have a lower income, the government may give you more than the 20% grant amount?   In addition, elegilble contribution and grant amounts can be carried forward, which sometimes can be a huge bonus when we fall behind our plan one year, but want to catch up the next.

Below is a break down of what that may look like.

CESG Contributions: Eligibility and Amounts

The Canada Education Savings Grant (CESG) helps boost savings for post-secondary education, with the government matching contributions made to an RESP. Here's how much an eligible beneficiary can receive each year based on family income and contributions:

If the annual family income is $55,867 or less:

• First year of eligibility: The CESG can provide up to $600.
• 20% on the first $2,500 contributed = $500
• 20% on the first $500 over $2,500 = $100
• To get the full $600, total contributions must be $2,500.
• Carry-forward option: If unused CESG amounts from previous years exist, contributions of $5,000 this year can provide up to $1,100.
• 20% on the first $2,500 = $500
• 20% on the next $2,500 = $500

If the annual family income is $55,868 to $111,733:

• First year of eligibility: The CESG can provide up to $550.
• 20% on the first $2,500 = $500
• 10% on the next $500 = $50
• To get the full $550, total contributions must be $2,500.
• Carry-forward option: Contributions of $5,000 this year can provide up to $1,050.
• 20% on the first $2,500 = $500
• 10% on the next $2,500 = $500

For higher incomes (greater than $111,733), the CESG is not available.

CESG Eligibility Requirements:

• The child must be under 18 and have a Social Insurance Number (SIN).
• Contributions must be made to an RESP in the year to qualify for CESG.

Other Considerations:

• The CESG is available until the year the child turns 17.
• Unused CESG amounts can carry forward, so if not maximized in previous years, they can be added in future years.
• Provinces like British Columbia and Québec also offer additional provincial benefits for RESPs.

This program is a great way for families to boost education savings, with various benefits based on income levels and contributions made each year.