The Baby and Toddler Guide

Ten things you should know about saving for your children’s future college or university education.

It’s one of the most important investments that parents will make. One could argue that it’s more important than buying a car or even a house. It’s an investment that will impact their children’s future for a lifetime—a college or university education.

Here are some common questions that many parents—like you—are asking…

Why do you need to start saving today for your child’s college or university education?
The cost for tuition and other expenses related to the post-secondary studies (such as books, supplies and accommodations) continue to rise. By the year 2025, the cost is estimated to reach $110,000* for an average four-year Bachelor of Arts Degree.

Although costs may vary by program, school and province, many of the same expenses will still apply to both colleges and university students across Canada. Are you ready for the real cost of education? An Education Savings Plan can help you fund your children’s future education.
How can you save for your child’s post-secondary education?
The Global Education Trust Plan (Global Plan) is an Education Savings Plan that grows with your child. When the Global Plan is registered†, your savings grow tax-deferred. The money is taxed only when withdrawn to pay for your child’s education and related expenses. You can contribute up to a lifetime maximum of $50,000.
How does the government help you save?
The Government of Canada offers additional funding such as the Canada Educations Savings Grant‡ (CESG) and Canada Learning Bond‡ (CLB), which add up to $9,200 in extra savings. And, Alberta residents could qualify for the Alberta Centennial Education Savings Plan‡ (ACES).
What is the Canada Education Savings Grant?
The CESG is a government grant that adds up to 20% (or $500 maximum) to your contribution into a Registered Education Savings Plan (RESP) per child annually, to a lifetime maximum of $7,200 or when the child turns 17 years old, whichever comes first.

Additional Canada Education Savings Grant
As of January 2007 or later, families with a net income of $37,178** or less are eligible to receive up to $100 more CESG yearly for each of their children. The amounts contributed, up to the first $500 yearly to an RESP, may receive an additional 20% of additional CESG (over the regular 20% CESG).

Families with a net income between $37,179 and $74,356** are eligible to receive an additional 10% enhanced CESG, up to the first $500 yearly (above the regular 20% CESG). This provides up to $50 or more for each child’s RESP.
What is the Canada Learning Bond?
The CLB is eligible for children born after January 1, 2004 to families receiving the National Child Care Benefit (NCB). These Families can receive $500 for each child’s RESP in the first year they qualify for the benefit and may be eligible for $100 for each subsequent qualifying year to age 15. These funds would contribute up to $2000 for an eligible child’s RESP.
What is the Alberta Centennial Education Savings (ACES) grant?
Children born in or adopted by an Alberta family on or after January 1, 2005 are eligible for up to $800 in grants. Parents will receive a one-time contribution of $500 and starting in January 2007, will be eligible to receive $100 for children resident and attending school in Alberta at ages 8, 11 and 14.
How safe is investing in the Global Plan?
Global understands that parents do not want to take any unnecessary risk with their children's future education. So, the Global Plan mainly invests in low-risks investments such Government Investment Certificates and corporate bonds.
What post-secondary education can be funded with the Global Plan?
Your child can choose any recognized trade, college or university course or program anywhere in the world.
Who can enroll in the Global Plan?
Although most Education Savings Plans benefit children, the Global Plan allows Canadian residents of any age to enroll. While the government grants are only available for resident children up to age 17, adults can still save for their own future education by taking advantage of several key benefits the Plan offers—such as tax-deferred growth.
What happens if your child does not pursue a higher education?
The Global Plan offers a variety of options:
(a) You can transfer it to a sibling.
(b) You can fund your own education.
(c) You can transfer*** up to $50,000 accumulated income to your (or your spouse’s) Registered Retirement Savings Plan to take advantage of any unused contribution room.
(d) You can withdraw*** the accumulated income as taxable earnings and withdraw your net deposits without being taxed.

For more information about saving for your children’s Education Savings Plan, contact a financial professional today.

* “Education Cost Calculator”, CanLearn Website (www.canlean.ca). Assumes 3.0% annual inflation from 2007
‡ Subject to eligibility
† The Global Plan is eligible for registration under section 146.1 of the Income Tax Act. Registering the Global Plan is subject to meeting any and all age, residency, Social Insurance Number provisions and other requirements of the Act.
** Amount subject to change
*** Subject to meeting Government requirements

Global Educational Marketing Corporation
Global Family of Companies
Web www.globalfiancial.ca