Canada: Federal study shows RESP grants help higher income families
According to a new federal study, Ottawa’s education savings program is helping wealthier families as opposed to those in need. The Canada Education Savings Program transfers grants of over $800 million each year into the education-savings accounts of Canadian families, but the report claims that around 50% of the money goes to families with household income over $90,000, while a third goes to those with income above $125,000. The grants top up registered education savings plan (RESPs). However, RESPs are typically used by higher income families who have a greater ability to save after paying living expenses than their lower income counterparts. According to RFi Group data, 18% of Canadians with household income above $90,000 use a RESP, compared to 11% of Canadians overall.