The Canada Education Savings Grant (CESG) is money that the Government of Canada will add to your child’s savings in a Registered Education Savings Plan (RESP) that you can have set up for them. Your child could receive up to $7,200 from the Government of Canada to help pay for his or her education after high school.
The basic CESG provides 20 cents on every dollar you contribute, up to a maximum of $500 on an annual contribution of $2,500. If you cannot make a contribution in any given year, you may be able to catch up in future years. This grant is available up until the end of the calendar year in which the child turns 17.
Depending on the child’s primary caregiver’s net family income, he or she may also be eligible to receive the Additional Canada Education Savings Grant (ACESG) which adds an additional 10% or 20% onto the first $500 put into the RESP.