RESP ADVICE How To Get A $7,200 Per Child Government Educational Grant Children may need to obtain an education to fulfill their dreams. Acknowledge that education is expensive. In just one year, a student attending university at the undergraduate level, could pay approximately $8,000 for tuition, books and supplies, clothing, and transportation even while living at home. If living away from home, add about $6,000 for accommodation and meals. It is important to begin saving for your child's education as early as possible. Canada Education Savings Grant (CESG) The federal government's Canada Education Savings Grant (CESG) can help you finance your child's education. The government will contribute up to $400 per year, based on 20% of your contribution (on the first $2,000 per year) to a Registered Education Savings Plan (RESP). You are allowed to contribute $4,000 per year to a maximum of $42,000 per student. Up to $7,200 CESG for each child is allowed. Money invested in RESP vehicles such as mutual funds or segregated funds will grow tax deferred until needed.

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