RESP: Invest in Your Child's Future Education

RESP Calculator Assumptions

• The calculation assumes contributions are made at the end of each period (month/year).
• Interest/growth on the investments is compounded annually, based on the "Assumed Annual Rate of Return" you provide.
• Education costs are assumed to increase annually at the "Assumed Annual Education Inflation Rate" you provide.
• The Canada Education Savings Grant (CESG) is calculated at 20% of annual RESP contributions, up to a maximum of $500 CESG per year per beneficiary, and applied at the end of the year of contribution.
• The lifetime maximum CESG per beneficiary is $7,200. The calculator stops adding CESG once this limit is reached or the child is no longer eligible for CESG (typically after age 17, with some exceptions for catch-up).
• If "Include Canada Learning Bond (CLB)" is checked:
  • An initial $500 CLB is estimated to be added in the first year of eligibility if the child is under 15.
  • An additional $100 CLB is estimated for each year the child is eligible (under age 15), up to a lifetime maximum of $2,000 CLB.
  • This calculator assumes continuous CLB eligibility if checked based on current (2024) guidelines; actual CLB payments depend on family income meeting specific government criteria each year. This tool does not verify income.
• This calculator does not include Additional CESG (A-CESG) for lower to middle-income families (which requires income input) or provincial education savings grants, which may provide further benefits.
• The "Assumed Annual Rate of Return" is a hypothetical rate for illustrative purposes and actual investment returns may vary significantly. Past performance is not a guarantee of future results. Investment fees are not factored in.
• Withdrawals for education are assumed to occur at the beginning of each year of study.
• The calculator does not account for taxes. While investment growth within the RESP is tax-sheltered, Educational Assistance Payments (EAPs - consisting of grants and investment earnings) are taxable in the hands of the student beneficiary upon withdrawal. Subscriber contributions are withdrawn tax-free.
• This tool is for illustrative and planning purposes only and does not constitute financial advice. Please consult with a qualified advisor for personalized guidance.

About the Canada Learning Bond (CLB)

The Canada Learning Bond (CLB) is money that the Government of Canada deposits directly into a Registered Education Savings Plan (RESP) for eligible children from modest-income families to help them save for their education after high school.

Eligibility for CLB (Simplified for Calculator):

This calculator provides an estimate. Actual CLB eligibility depends on specific criteria including:

• Children must be born in 2004 or later.
• They must be residents of Canada and have a valid Social Insurance Number (SIN).
• An RESP must be opened for them.
• Crucially, the child's family must meet specific adjusted family net income thresholds. For example, for the 2023-2024 benefit year, for a family with 1 to 3 children, the adjusted family net income generally needed to be below approximately $53,359 to qualify for CLB (this threshold changes annually and with family size).

How CLB Works (Estimates in Calculator):

• The Government provides an initial $500 for the first year of eligibility.
• Eligible children can get an additional $100 every year they are eligible, up to and including the benefit year in which they turn 15.
• The total lifetime CLB amount per child is $2,000.
• No personal contributions are required to receive the CLB.

If you check the "Include CLB" box, this calculator will *estimate* CLB based on age criteria only. It does NOT verify income eligibility.

For official details and to confirm eligibility based on your family's income, please visit the Government of Canada website or speak with us. We can help you apply for all eligible grants when setting up an RESP.