Our daily blog offers selected news of interest to SmartSAVER’s stakeholders and shines a light on the creative ways that communities are promoting the Canada Learning Bond. Stay up to date, read what others are doing and share your own story.

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We hope our blog will create conversation and support the exchange of ideas.

We’d love to hear from you! Tell us about your CLB promotion or share tips to engage eligible families. Do you have a question for the community? Submit your stories, ideas and questions to info@SmartSAVER.org and we’ll share it on our blog.


#EveryChildAnRESP Mommy Blogger: Planning & Saving for Their Bright Futures with SmartSAVER.org

This post was originally published on RaisingMyBoys, October 13, 2016, as part of SmartSAVER’s 2016 #EveryChildAnRESP Back to School campaign. We thank RaisingMyBoys for participating and amplifying our education savings message to help us reach more parents.


When I started university back in the 80s, my tuition was $582 a semester. I worked a summer job, then part-time during the year, lived at home, and came out debt-free. Those days are long gone. Our big guy now pays about $4000 per semester. Heaven only knows what it will be when Boo gets to that stage!

It’s clearly unrealistic to expect our kids will be able to pay for higher education on their own. Student loans are available, but they don’t cover the whole cost, and even if they did, would I really want my boys starting out adult life with that kind of debt? Not if I can help it.

Read complete blog post on RaisingMyBoys.

Why Education Savings Matter. A Guest Post by Prosper Canada.

Higher education is a valuable opportunity for all Canadians. Not only can it increase income earning potential for many who pursue it, but post-secondary education can also be a route out of poverty for many people living on low incomes. The reality however is that only 30 per cent of students from the lowest income quintile end up attending post-secondary education. Even among those students with A+ averages, students from low-income families are 10 per cent less likely to attend post-secondary education than higher income students. For many families living on low incomes the financial cost of pursuing higher education is often a barrier.

Youth with savings are 50 per cent more likely to attend post-secondary education

Research has shown that having savings set aside for post-secondary education helps children perceive it to be within their reach.  In fact, a person with access to financial assets including education savings, is more likely to graduate from post-secondary education, even if that savings is only $500. Post-secondary graduates also fare better in terms of labour force participation, employment and earnings, than do people with less education, even for those with degrees in non-STEM fields. However, the cost of higher education can negatively impact a family’s financial well-being, when it leads to increased debt and reduced savings.

This is why education savings tools like the Registered Education Savings Plan (RESP) and Canada Learning Bond (CLB) are so important, to help families living on low incomes build education savings for their children.

Growing support for education savings

It’s encouraging to see support for education savings growing across Canada. The federal government has made education savings a priority. In the Minister of Employment, Workforce Development and Labour Mandate Letter, the Prime Minister mandated that the Ministry work “collaboratively with provinces and territories to improve promotion of RESPs and Canada Learning Bonds, to make registration simpler, and to increase take up rates.” The ABLE community of practice has also endorsed the goal set by SmartSAVER to increase take-up of the Canada Learning Bond to 40 per cent of eligible beneficiaries. In British Columbia, the BC Training and Education Savings grant provides $1,200 into the Registered Education Savings Plan of children born in 2006 or later. There has also been growing support for Education Savings Week activities nation-wide.

Working in partnership to increase take-up of RESPs and the CLB

As part of the financial empowerment work we’re doing to improve the financial well-being of Canadians on low incomes, Prosper Canada is working to expand take-up of RESPs and the CLB through our national and Ontario Financial Empowerment Champions (FEC) projects. We’ll be working with FECs over the next five years to enrol 14,000 children in RESPs and the Canada Learning bond program across both projects. That’s 14,000 children that can potentially receive up to $2,000 free money towards their education! Our recommendation that federal departments invest nationally to advance the take-up of RESPs and CLBs also forms part of our 2017 pre-budget submission to the federal government. Since these savings tools also require participants to access mainstream financial services, this can also mean overcoming barriers to financial inclusion, such as accessing identification, direct deposit banking, or tax filing support.

The number of low and middle-income families with children accessing RESPs has increased, especially since the introduction of the Canada Learning Bond. By 2012, RESP take-up among families with the lowest income eligibility threshold had significantly increased to 30 per cent of eligible families, but too many Canadian families are still missing out on this education savings tool. It is vital that more Canadians access this asset-building opportunity. Investments such as these help to build a strong foundation to help people with low incomes improve their financial well-being and economic opportunity.

By Glenna Harris,
Curriculum and Content Writer at Prosper Canada.

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