Canada Learning Bond
Canada has a Registered Education Savings Plan where parents can save for their child’s post-secondary education in a tax-preferred account. A Learning Bond program was established in 2004 to encourage low-income families to use these accounts. This program will give low- and moderate-income children a $500* endowment (equivalent to about $434 in US dollars) into a Registered Education Savings Plan at birth and additional $100 top-ups every year until age 15, totaling up to $2,000. It is estimated that this program will reach 120,000 newborns a year at a cost of $83 million ($72 million in US dollars).
In addition to the Learning Bond program, Canadians of all income levels have their savings in Registered Education Savings Plans progressively matched. All families receive at least a 20 percent match on their savings of up to $2,000 a year, with low- and moderate-income families receiving a 40 percent matching grant on the first $500.
*All figures are in Canadian dollars
About the Canada Learning Bond
In addition to the Learning Bond program, Canadians of all income levels have their savings in Registered Education Savings Plans progressively matched. All families receive at least a 20 percent match on their savings of up to $2,000 a year, with low- and moderate-income families receiving a 40 percent matching grant on the first $500.
*All figures are in Canadian dollars
About the Canada Learning Bond
