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

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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