A9 smart saver
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Transcript of A9 smart saver
SmartSaver
Turning Government Policy into Community Practice
Adriana BeemansNasrin Khatam
Workshop Objectives
Provide information regarding the Canada Learning Bondand RESP and understand the difference about products;
Provide an overview of Smart Saver and the policy challenge it responded to;
Raise awareness among Settlement staff on importanceof Canada Learning Bond and identify ways this can be integrated into the settlement work; and
Learn about SmartSaver resources that can help.
Questions
Do you have a higher education?
Was it a financial challenge?
Have you heard about the Canada Learning Bond?
Is this something you would recommend for low income families?
Do you know families that can not afford post secondary education for their children?
WHY THIS IS IMPORTANT?
Cost of post-secondary education in Canada more than doubled in real terms since 1990
About half of post-secondary graduates in 2005 relied on student loans
Graduates debt load averaged $20,400 (bachelor’s) and $11,800 (diploma) two years after graduation
Sources: Statistics Canada and Canada Millennium Scholarship Foundation, The Price of Knowledge, 2009
“ PARTICIPATION IN RESPS IS CONCENTRATED IN HIGH-INCOME, HIGH-WEALTH AND HIGH-EDUCATION FAMILIES.LOW-INCOME CHILDREN ARE NOT BENEFITING FROM RESPS.”
15%
32%53%
Distribution of Total RESP Assets by Family Income
Less than $40,000 $40,000 - $75,000 $75,000 +
Source: TD Economics, How are we doing on social policy? Is the recession paralyzing or transformative?, 2009
Youth who have savings are 50% more likely to participate in post-secondary education
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
No savings for education Savings made for education
49.6%
74.1%
50.4%
25.9%
Minimum some post-secondary No post-secondary
Source: Statistics Canada and HRDC, Access, persistence and financing: First results from the Postsecondary Education Participation Survey (PEPS), 2003 (Youth aged 18-24 no longer in secondary school)
Millions of dollars in untapped education funding for Toronto’s low-income families
81% of Canada Learning Bonds have not been accessed
415,518 eligible children not
enrolled across Ontario
Only 18.8% (78,481) children
are enrolled
60,000 eligible children just
in Toronto
Initial payments to Toronto
children worth $30,000,000
Barrier: Low awareness
RESP awareness
< 30%
CESG awareness
<20%CLB awareness
< 10%
Barrier: Poor knowledge of product choices
Barrier: Multi-step process
What is Smart Saver?
A Creative Partnership between:
Working Women Community Centre
OMEGA Foundation
YMCA
What is Working Women’s Role?
Working with Community Organizations and Networksto improve low-income families access to available funding for their children's education savings, so that higher education become a realistic opportunity for low-income students.
Increase awareness regarding the Canada Learning Bond
What is Canada Learning Bond (CLB)?
Canada Learning Bond is a $500 grant from the Government of Canada to help families start saving early for their child’s education after high school.
This money can be used to pay for full-time or part time studies in an apprenticeship program, trade school, college or university.
Who Can Receive CLB?
Children born after December 31, 2003
Parent or primary caregiver eligible for the National Child Benefit Supplement(maximum income $41,544 in 2010)
1st payment $500
Maximum $2,000
No family contribution required
How To Get CLB?
Child needs a Social Insurance Number (SIN)
A Registered Education Savings Plan (RESP) needs to be opened under the child’s name.
Where To Open a RESP Account ?
RESP account can be opened through financial institution such as:
Bank or credit union
Certified financial planner
Group plan dealer
The Canada Learning Bond will be deposited directly into the child’s RESP.
How To Make It Happen?
Reach out to families in their own environment and language.
Make it easier for low-income families to find and start an RESP that they can afford, and access CLB.
Make sure community organization’s staff know about CLB when their clients ask them questions, they know the right answers.
RESP Government Incentive for Families
Net Family Income
Canada Learning Bond
Basic Canada Education Saving Grant (CESG)
Additional Canada Education Saving Grant (A-CESG)
Total Government Entitlement
Less than $41,455
Born after Dec.31,2003
Receive National Child benefit Supplement
20% on the first $2,500 in annual
contributions made to each child’s RESP
20% More on the first
$500 contributed to an RESP annually.
40%Government
Match
$41,544 to
$83,088X
20% on the first $2,500 in annual contributions
made to each child’s RESP
10% More on the first
$500 contributed to an RESP annually.
30%Government
Match
$83,088 + X
20% on the first $2,500 in annual contributions
made to each child’s RESP
X20%
GovernmentMatch
5 Top Reasons to Join Smart Saver?
1. You are trusted role models and authority figures.
2. Families turn to you for help and information on public programs.
3. You understand parents’ languages and cultures.
4. It’s important that you know about government programs, that can improve your client’s life. Your knowledge is key so they don’t get take advantage of.
5. This is a tangible way to break the cycle of poverty, by making higher education a reality.
How You Can Help?
Get involved
Sign up for training and identify your staff who can participate in the training.
Hold workshops for families either as an Organization or as a Network.
Help families to enrol.
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# C
hil
dre
n e
nro
lled
January - March 2010 vs. January - March 2011:- CLB enrolment higher in 36 out of 44 neighbourhoods- Toronto enrolment overall is 24% higher in 2011 than in 2010
New enrolments Jan -Mar 2010
New enrolments Jan - Mar 2011
Get Involved
Join the Smart Saver Agency Network
Participate in 3 hours training.
Promote the Canada Learning Bond in your locations.
Commit to hold a minimum of two (2) Learning bond family outreach workshops.
Identify opportunities in your programs to provide information about RESPs and the Canada Learning Bond.
Help families secure a Social Insurance Number for their child.
Help families complete the SIN application form
Host a mobile Service Canada clinic for SIN registration
Lead a parent group excursion to a local Service Canada office
SIN numbers issued on the spot by Service Canada
Help families connect with an RESP provider.
Help Families to Enrol
www.smartsaver.org