Toronto, Ontario, January 10, 2011 - To help low- and middle-income families in Ontario improve their financial literacy and money management skills, as well as save for their children's education, ABC Life Literacy Canada will launch a new project, Money Matters. Ms. Lois Brown, Member of Parliament for Newmarket-Aurora, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development, today announced Government of Canada support for the project.
"Our government wants young Canadians to succeed in the future, and that means helping them get a post-secondary education," said Ms. Brown. "That is why we help organizations like ABC Life Literacy Canada encourage families to save early for their children's education and take advantage of Government of Canada education savings incentives."
Through this project, ABC Life Literacy Canada will work with its 400 partners across Canada to create financial literacy modules for low- and middle-income Canadians. These modules will help participants gain a better understanding of Registered Education Savings Plans (RESP) and the benefits of the Government of Canada's education savings incentives. By acquiring financial and money management skills, parents will be able to make informed decisions about saving for post-secondary education.
The Government of Canada helps Canadian families save for their children's education after high school by offering education savings incentives, such as the Canada Learning Bond and the Canada Education Savings Grant, through RESPs.
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This news release is available in alternative formats on request.
For further information (media only):
Michelle Bakos
Press Secretary
Office of Minister Finley
819-994-2482
Media Relations Office
Human Resources and Skills Development Canada
819-994-5559
Backgrounder
Today's announcement is an example of how the Government of Canada is working with its provincial and territorial partners, business and labour representatives, educators, community-based organizations and other stakeholders to make education after high school more accessible and affordable.
Recognizing the challenges that low- and middle-income families may face in saving for an education after high school, the Government of Canada established the Canada Education Savings Grant and the Canada Learning Bond. Both savings incentives are administered by Human Resources and Skills Development Canada.
The Canada Learning Bond
The Canada Learning Bond is a grant available to children who were born after December 31, 2003, and whose families receive the National Child Benefit Supplement.
The initial grant is a $500 payment made into a child's Registered Education Savings Plan (RESP). Additional grants of $100 are paid during each year that a child remains eligible for the Supplement, up to the age of 15, to a maximum of $2,000.
The Canada Education Savings Grant
The Canada Education Savings Grant offers an incentive for families to save for a child's education after high school by providing a grant directly into a child's RESP. The Grant is calculated as a percentage of contributions paid into an RESP. Regardless of their family income, Canadians can receive a grant of 20 percent on the first $2,500 contributed to an RESP. Furthermore, depending on the net family income, an additional grant of 10 or 20 percent could be added on the first $500 contributed.
Education Savings Community Outreach
The Education Savings Community Outreach (ESCO) contribution funding program was launched in 2005 as an important component of the Canada Education Savings Program outreach strategy, in order to inform Canadians of the existence of the Canada Learning Bond and other education savings incentives.
ESCO supports local, regional, national and umbrella non-profit organizations, post secondary institutions, professional organizations, provincial/territorial and municipal governments in the development and delivery of projects. These projects aim at reaching those at risk of not receiving the Canada Education Savings Grant and Canada Learning Bond benefits to which they are entitled. ESCO also raises awareness of the benefits of saving early for children's post-secondary education through RESPs.
ABC Life Literacy Canada's Money Matters project
Over the next three years, ABC Life Literacy Canada will work with its network of 400 local literacy partners, such as Metro Toronto Movement for Literacy and TD Bank Group, to collaborate on the creation of financial literacy modules through the Money Matters project.
Money Matters is a financial literacy program for adult learners across Canada. ABC Life Literacy Canada is developing this project by teaching the basic skills to manage one's money, thereby helping break the cycle of poverty. By acquiring such skills, adult learners can possess a better understanding of savings incentives and RESPs. They can improve their financial literacy to make informed decisions and overcome barriers about saving for post-secondary education.
Financial organizations, such as TD Bank Group, will provide financial volunteers with the training and materials needed to work with teachers to deliver Money Matters to adult learners.
For more information about the Canada Education Savings Grant and the Canada Learning Bond, visit www.CanLearn.ca or call toll free 1 800 O-Canada (1 800 622 6232), TTY: 1 800 926-9105.
