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Canada Education Savings Grant (CESG)

What is 'Canada Education Savings Grant - CESG'

A grant from the Government of Canada paid directly into a beneficiary's Registered Education Savings Plan (RESP). It adds 20% to the first $2,000 in contributions made into an RESP on behalf of an eligible beneficiary each year.

Explaining 'Canada Education Savings Grant - CESG'

The CESG is an incentive program designed to encourage people to save for a child's education and to lessen the financial burden of a post-secondary education.


Further Reading


Education savings plans, matching contributions, and household financial allocations: Evidence from a Canadian reform
www.sciencedirect.com [PDF]
… Canada, Hong Kong, Singapore, South Korea, and the United Kingdom have CDA policies. In Page 2. 2 … It offers low-income families the opportunity to save for their children's college or university education for as little as 40 ZAR (5 USD) a month …

Tax preferences for education saving: are RESPs effective?Tax preferences for education saving: are RESPs effective?
search.proquest.com [PDF]
… Canada, Hong Kong, Singapore, South Korea, and the United Kingdom have CDA policies. In Page 2. 2 … It offers low-income families the opportunity to save for their children's college or university education for as little as 40 ZAR (5 USD) a month …

Registered education savings plans: A tax incentive response to higher education accessRegistered education savings plans: A tax incentive response to higher education access
heinonline.org [PDF]
… Canada, Hong Kong, Singapore, South Korea, and the United Kingdom have CDA policies. In Page 2. 2 … It offers low-income families the opportunity to save for their children's college or university education for as little as 40 ZAR (5 USD) a month …

Formative Evaluation of the Canada Education Savings Grant ProgramFormative Evaluation of the Canada Education Savings Grant Program
eric.ed.gov [PDF]
… Canada, Hong Kong, Singapore, South Korea, and the United Kingdom have CDA policies. In Page 2. 2 … It offers low-income families the opportunity to save for their children's college or university education for as little as 40 ZAR (5 USD) a month …



Q&A About Canada Education Savings Grant (CESG)


What are contributions made into an RESP on behalf of an eligible beneficiary called?

Contributions made into an RESP on behalf of an eligible beneficiary are referred to as "contributions".

What is the Canada Education Savings Grant?

The Canada Education Savings Grant (CESG) is a grant from the Government of Canada paid directly into an RESP.

Can anyone else make contributions into your child's RESP on their behalf?

Yes, other people can make contributions into your children's RESPs on their behalf but they will not be able to claim them as deductions against their income tax returns unless they are family members or legal guardians with custody rights over the beneficiaries named in these plans.

How much can you contribute to your child's RESP each year?

You can contribute up to $2,000 per year for every eligible child. This number increases if you have more than one child who is enrolled in post-secondary education at any given time.

Is there a limit on how much money you can save for your children's education through RESPs ?

No, there is no limit set by law or regulation regarding how much money you may save for educational purposes through RESPs . However, there may be limits imposed by financial institutions that manage these accounts and by provincial legislation regarding maximum

How much does a beneficiary receive in CESG per year?

Beneficiaries receive $500 each year for every eligible child.

Who receives the CESG?

The beneficiary receives the CESG.

What happens if you do not use all of your contribution room in one year?

Any unused contribution room carries over to future years and accumulates until it has been used up completely or until your child turns 17 years old, whichever comes first.

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