DO I NEED TO SAVE?

No, it is free to register for the BCTESG grant and CLB bond.

If parents wish to receive the 20% - 40% government match from the CESG and ACESG, they need to save. The more you save, the more CESG grant is received. Parents saving $174 per month for a newborn child would move the entire $7200 CESG grant to a child. Because the CESG grant is moved in 20%-40% increments, it is easier for a child to receive more of this grant when you start at birth or a young age.

* The BCTESG expires the day before the 9th birthday of the child, and the CLB will backdate to the year of birth/or when the child obtained Canadian residency (The CLB is only eligible for children born 2004 and after). 

WHEN SHOULD I REGISTER, ARE THERE AGE LIMITS?

It is best to register children as early as possible, expecting parents can pre-register before the arrival of their child. It is important to keep in mind some grants like the BCTESG expire the day before the child's 9th birthday. Additionally, all grants and savings will earn compound interest growth. Starting early provides more funds for your child, and It becomes increasingly difficult to register and receive grants as your child gets older. *For instance, for an unregistered child at 15 years of age. Government stipulation states that if parents wish to save into an RESP to receive the CESG, $2000 must be saved into the RESP savings account by Dec 31st of the year the child turned 15 years of age.

WHAT IF MY CHILD DOES NOT ATTEND POST-SECONDARY?

If a child (Beneficiary) does not use the RESP the Subscriber (Owner of the RESP savings account) has options:

The RESP can be transferred as a whole or partial to another sibling related to the Beneficiary. 

The Subscriber can move the savings and all interest earned on the grants and personal savings to their RRSP.

The Subscriber can use savings for personal use, however it will not be protected in a tax-shelter and will be subject to taxes.

* In both situations where the Subscriber has either transferred to their RRSP or personal use, the grants earned are returned to the government for future children's use. However, interested earned on both the grants and savings are available to the Subscriber.