No need to miss out on education grants

Re They thought they were saving for their kids’ education but were shocked to learn money was gone, July 31 Since 2000, we have, as a charitable initiative, been involved in promoting RESPs and the Canada Learning Bond to the children of families who stand to benefit from them the most. Our approach is to direct families of low and moderate incomes to financial institutions such as certain banks and credit unions where there are no fees, commissions or mandatory required instalments or payments.

The story behind the thorough reporting by Kenyon Wallace lies in the fact that even modest savings can a have positive impact on educational outcomes. For example, low- and moderate-income children with savings designated for post-secondary education are four times more likely to graduate than ones without savings.

Too many children are missing out on valuable free government education grants because they are either unaware, ill-informed or because their families don’t believe they have the means to get started. Unfortunately, less than 45 per cent of lower-income families have RESPs, which they need to access valuable grants like the Canada Learning Bond, a no-strings-attached RESP contribution of up to $2,000 from the Canadian government, which eligible families can receive without using any of their own money.

There are more than 1.8 million eligible children in Canada who have not yet accessed the Canada Learning Bond. Low awareness is a significant barrier. So are the cautionary tales shared through word of mouth and media coverage like this article.

It is of critical importance that families know that there are effective and readily accessible ways for them to start saving today for their kids’ education, at no cost. Luke Connell, executive director, SmartSAVER, Toronto