The Crippling Cost of Education and Training ... and how to lower It.

by Jeff Kennedy, CIM

Whether it’s saving for your kid’s school or budgeting for your own training, it costs a lot of dollars to gain a little extra sense (sorry for the bad joke…my father was a school teacher).

Let’s take a look at a few ways to help ease the pain on the pocket book....

General Benefits

Before getting specifically into education and training, I have to make special mention of the Government of Canada (GOC) website tool Benefits Finder

If you haven’t already, I strongly recommend you try this tool.  It asks you a series of questions and replies back with a list of the many GOC programs and services in which you may be eligible (including education and training). 

http://www.canadabenefits.gc.ca/

Definitely worth a look!

Now let’s take a look at some of the education grants and offerings out there…

Registered Education Savings Plans (RESP)

The RESP program allows for you to save money, tax free, for your children’s education.  There is a lifetime limit on contributions to RESP of $50,000 per child.

For more information, check out Canada Revenue Agency’s Website at:

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/resp-reee/menu-eng.html

Canadian Education Savings Grant (CESG)

The key points on the Canadian Education Saving Grant:

  • matching contribution of 20% on every dollar of the first $2,500 (per child) that you save in your Register Education Savings Plan (RESP) each year. 
  • an additional 10% – 20% per year for low income families
  • maximum lifetime grants of $7,200 / per child
  • income generated is tax free

For more information, check out Canada Revenue Agency’s Website at:

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/resp-reee/cesp-pcee/csg-eng.html

Athletes, Low to Middle Income, Indigenous People, Students with Dependents, Special Needs and many more…

The GOC has a number of other funding opportunities.  Another great source is…

 https://www.canada.ca/en/services/benefits/education/grants.html

Canada Learning Bond (CLB)

Families earning less than $45,282 (as of 2016) with children born after 2003 who also receive the National Child Benefit may apply for the CLB.  Benefits include:

  • up to $2,000 from the Canada Learning Bond.  
  • $500 / child at birth
  • another $100 / year until they are 15. 

For more information, check out Canada Revenue Agency’s Website at:

http://www.esdc.gc.ca/en/education_savings/clb.page

Provincial Programs

British Columbia

Children born 2006 (previously it was 2007) or later qualify for the BC Training and Education Saving Grant.  You must apply between your child’s 6th and 9th birthdays.  Benefits include a one-time payment of $1,200. 

For more information, check out British Columbia’s Website at:

http://www2.gov.bc.ca/gov/content/education-training/k-12/support/bc-training-and-education-savings-grant

Saskatchewan

Saskatchewan provides a grant of 10% (up to $250/year) on RESP contributions made since January 1, 2013.

For more information, check out Saskatchewan’s Website at:

http://www.saskatchewan.ca/SAGES#utm_campaign=q2_2015&utm_medium=short&utm_source=%2FSAGES

Quebec

Quebec provides a grant of 10% (up to $250/year) on RESP contributions.  They also have an addition $50 per year for low income families.

For more information, check out Quebec’s Website at:

http://www4.gouv.qc.ca/EN/Portail/Citoyens/Evenements/DevenirParent/Pages/incitf_eparg_etud.aspx

Adults

Let’s not forget the adults! 

Canada Job Grant

 

Employees and Self-employed Contractors may wish to investigate one of the many joint Federal/Provincial job grants available to workers looking to improve their skills.  For example, the Province of BC offers up to $15,000/year in training through the Canada-BC job grant.  This can cover costs such as tuition, textbooks, software and examine fees.

Here is a link to the Grants by Province.

http://www.esdc.gc.ca/en/job_grant/info.page

Lifelong Learning Plan (LLP)

The LLP allows you to borrow against your RRSP for full-time education.  This can be used to finance yourself or a spouse.  The LLP is not intended for your children’s train or education.

Find out more on CRA's website here:

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/llp-reep/menu-eng.html

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At Richer Journey's we work with you to translate your financial goals into reality.  We work with you to create a structured plan, educate you on investment options and teach you practical negotiation skills.  All our tips are focused on increasing your returns.  We do not sell products or offer to manage your money… our focus is solid education.

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