Introduction
Saving for your child’s post-secondary education is one of the most important investments you can make. Registered Education Savings Plans (RESPs) help Canadian families maximize their savings with government grants that can make a real difference in your child’s future.
Key Federal Grants
Canada Education Savings Grant (CESG)
The CESG matches 20% of annual RESP contributions up to $500 per year, per child (lifetime maximum of $7,200). This grant is available to all eligible Canadian children, regardless of family income.
Canada Learning Bond (CLB)
Families with lower incomes may qualify for the CLB, which provides up to $2,000 per eligible child—no personal contributions required. This is a valuable resource for families looking to start saving, even with modest means.
Provincial Grants
BC Training and Education Savings Grant (BCTESG)
What is the BCTESG?
The BCTESG is a one-time $1,200 grant from the Government of British Columbia, available to eligible children born on or after January 1, 2006. No matching contributions are required—simply apply through your RESP provider when your child turns six.
Important Change: BCTESG Phasing Out in 2028
In the BC government’s 2026–2027 Budget, it was announced that the BCTESG will be discontinued in 2028. Families with eligible children must apply before the deadline to secure this valuable grant.
How RESP Savings Can Be Invested
RESP contributions can be invested in a range of options, including Guaranteed Investment Certificates (GICs), mutual funds, and segregated fund insurance products. While GICs offer safety and predictability, they may not keep pace with inflation or provide the growth potential needed for long-term education savings. Segregated funds—available through licensed Life License Agents—combine investment growth potential with unique insurance protections, such as principal guarantees and potential creditor protection. This can be especially valuable for families seeking both growth and peace of mind.
Professional Advice Matters
A licensed Life License Agent can help you navigate RESP grant eligibility, investment choices, and the pros and cons of each option. Personalized advice ensures your education savings strategy is tailored to your family’s goals, risk tolerance, and timelines.
What Families Should Do Now
- Check eligibility: If your child was born in 2006 or later and is a BC resident, confirm if you’ve received the BCTESG.
- Apply as soon as possible: Don’t wait—deadlines are firm, and the grant is being phased out.
- Maximize federal grants: Continue making regular RESP contributions to take full advantage of CESG and, if eligible, the CLB.
- Review your investment strategy: Consider the benefits of segregated funds and seek guidance from a licensed advisor.
Conclusion
Government grants can significantly boost your child’s education savings, but deadlines matter—especially with the upcoming end of the BCTESG. The right investment strategy, paired with professional advice, can make all the difference. If you have questions or need help setting up or reviewing your RESP, contact Prominence Insurance Inc. for expert, personalized guidance.
Sources:
- Government of Canada – CESG
- Government of Canada – CLB
- Government of BC – BCTESG
- BC Budget (main page)
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