A new grant from the BC government will give $1,200 to children under seven if they have an RESP (registered education savings plan).
The program is called the BC Training and Education Savings Grant, and the government’s commitment to it was reaffirmed in the latest provincial budget.
“With the passing budget,” explained Peter Fassbender, minister of education, “we are ensuring that this money remains available for parents to save, not for the government to spend.”
All children born after January 1, 2007 who are BC residents are eligible. Parents must make an RESP for their children before their seventh birthday. When children turn six, the family must apply for the grant through their RESP provider. If the child is already six, the application will be done at the same time the RESP is opened.
The province is working with Human Resources and Skills Development Canada to implement the program, and the process is expected to take between 18 to 24 months. Once the program is in place, parents whose child is already six will receive a notice to apply for the grant.
The program aims to emphasize the importance of planning and saving early for a child’s post-secondary education.
An RESP is a special account where money can be saved for a child’s education tax-free. Money invested grows over time, and the account structure makes it easier for other family members to contribute.
The new grant replaces the Children’s Education Fund, which invested $1,000 for each child born in and after 2007. These invested funds will be put toward the grants.
If the child ends up not pursuing post-secondary education after they graduate, the grant is returned to the government.
Readers looking for more information can visit the BC government’s website at www.gov.bc.ca.
