Being financially literate, according to the definition adopted by the Task Force on Financial Literacy, is “having the knowledge, skills and confidence to make responsible financial decisions.” With the school year already in full swing, the pursuit of knowledge in an academic sense, occupies the minds of many parents – How will my child fare this year at school? What does the future hold for my child academically?

The cost of education has real implications for Canadians living on low-incomes. With the average student graduating with $26,000 in debt ($35,000 in B.C.), middle- and upper-income parents are doing what they can to ease the financial burden for their children by investing in Registered Education Savings Plans (RESPs). An RESP is a special savings account that can help Canadians save early for their child’s post-secondary education. The Government of Canada has two financial incentives for Canadians to save in RESPs: The Canada Learning Bond (CLB), where families can get up to $2,000 for their child's RESP —without having to put in any of their own money, and the Canada Education Savings Grant (CESG), where families can receive up to $7,200 from the Government of Canada to help pay for their child’s education after high school.

For many Canadians living on low incomes however, finding extra money to put away for their child’s post-secondary education can be difficult, if not impossible. Many hope their children will aspire to higher education, but are keenly aware of the financial barriers that often prevent them from pursuing further studies once they leave high school.Low financial literacy may also prevent some parents with low incomes from accessing certain government benefits or programs that could help their children to save for post-secondary education, simply because they don’t know about them.

In 2008, research conducted by the Omega Foundation revealed that families with high incomes were taking advantage of Canada’s programs to encourage education savings at four times the rate of families with low incomes. Only 16 per cent of families in the low-income bracket had taken advantage of the Canada Learning Bond to help start an RESP for their child. In response to these findings, the Foundation embarked on a very successful three-year project called SmartSAVER to address this issue.

SmartSAVER engaged almost 1,000 service providers in the Toronto area and included partnerships with the City of Toronto, the Toronto District School Board and the federal government. The program provided families with information on RESPs and the Canada Learning Bond, as well as help accessing these savings supports through community clinics.

Fast forward to 2013 and the situation has improved markedly. A March 2013 report outlining the impact of the SmartSAVER program, shows that the uptake of the Canada Learning Bond in Toronto increased from 27.7 per cent of eligible children at the end of 2009 to 39.3 per cent at the end of 2012.

The challenge moving forward will be to continue the momentum and to broaden the impact into other regions. To view the percentage of eligible children receiving their Canada Learning Bond in your province, click here.

Resources to share broadly

The Omega Foundation has created a website for parents and community organizations (http://community.smartsaver.org/learn-more.shtml). The website contains many valuable resources to help promote access to education savings supports in communities across the country, including an online workshop that offers basic training in RESPs and the Canada Learning Bond. The training reveals some interesting statistics, including the fact that youth with savings are almost 50 per cent more likely to attend a post-secondary school and that children from low-income families are less likely to attend a post-secondary school, even if they have excellent grades and their parents think education is a priority.

The following RESP resources can also be found on the Employment and Social Development Canada website:

• Information about RESPs and education savings.
• Information that explains RESPs and the Canada Education Savings Program (CESP) for providers, promoters and trustees.
• Information on the Canada Learning Bond along with training modules, eligibility and application forms.

For an academic perspective on access to post-secondary education by low income families, the 2011 Higher Education Quality Council of Ontario conference released a number of reports coming out of its Fear of Finance: Financial Literacy and Planning for Post-Secondary Education conference. This conference brought together leading researchers to discuss their work in educational financial literacy, with many focusing on the issues and data unique to low-income families.

We know from research that education levels are a key determinant of an individual’s employment prospects and their future earning potential. Programs that assist families with low incomes to finance their children’s education, can only improve the potential of those children for future financial success. Access to information and increased awareness around RESPs and programs like the Canada Learning Bond are vital to children from families with low incomes.

To understand the importance of RESPs from the student’s perspective, we recommend reading the article, Two-thirds of Canadian university students have no RESP: survey, recently featured on canada.com.

Help spread the word!

The Canada Education Savings Program has developed a network of community organizations interested in promoting the Canada Learning Bond to low income Canadians. If you are interested in participating in this network and getting access to additional promotional resources you can request to participate by registering for a password here: www.cibletudespro-canlearnpro.ca

Sources:

OMEGA website - www.theomegafoundation.ca

HRSDC website - www.hrsdc.gc.ca/eng/home.shtml

SmartSAVER - www.smartsaver.org

Higher Education Quality Council of Ontario - www.heqco.ca/en-CA/Pages/Home.aspx

Globe and Mail – September 6, 2013 - www.theglobeandmail.com/commentary/another-day-smarter-but-deeper-in-debt/article14157421/

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Do you know the maximum amount that the Canada Learning Bond can grant an RESP beneficiary?


      $100
      $500
      $1000
      $2000


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This September, 700 high-school students from across Toronto returned to the classroom better prepared to plan financially for their futures.

The students were participants in the Focus on Youth program, a partnership between the Ontario government, school boards and community agencies that provide summer programs for young people living in high-need communities. The Toronto youth—students from the Toronto District and Catholic District School Boards—earned the chance to gain valuable work experience at local community organizations. In preparation for the program, the youth went through intensive orientation and leadership workshops, including financial literacy training.

The United Way of Toronto was a key partner in delivering financial literacy training to the youth. The United Way, in turn, drew on the help of a large network of facilitators and volunteers committed to supporting youth financial education. Organizations that helped design and deliver the program included: Credit Canada; the Financial Advocacy and Problem Solving (FAPS) programs at St. Christopher House, Jane-Finch Community and Family Centre, and Agincourt Community Services Association; the University of Toronto Centre for Community Partnerships; the York University-TD Community Engagement Centre; and the Canadian Centre for Financial Literacy at SEDI.

During their training, students were invited to take part in the Amazing Race of Money, an interactive game originally designed by staff at North York Community House and modified for the Focus on Youth program. During the game, teams took on tasks at 15 different stations. Activities such as the Understanding Your Paycheque matching game, the Fraud/Identity Theft Wheel of Fortune, and the Frosh Week Puzzle tested the students’ knowledge, while providing much-needed information to help them build their financial health. Participating teams were scored on effort and their correct responses upon completion of each task. The team with the highest tallied score won.

No youth left empty-handed. Each participant was given a “swag bag” containing unbiased financial information, stationery items and apparel from the Comedy Network. Five lucky students also won a draw for iPod Minis.

Overall, it was a great start to the summer and, hopefully, a memorable way to share financial information with the youth participants at the Focus on Youth program.

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ATTENTION: SEDI Awards date change – MARCH 27, 2014

Get inspired by remarkable individuals making a difference to expand economic opportunity for Canadians living in poverty. Come celebrate with us on March 27, 2014 as we honour SEDI’s Award recipients (formerly scheduled for November 18, 2013). In response to a number of our valued supporters, we moved the date to ensure we can share the occasion with as many of our stakeholders as possible. The new date also provides an exciting opportunity for SEDI to unveil its new brand!

The SEDI Awards Gala Dinner brings together more than 400 community, business and government leaders to celebrate the extraordinary achievements of SEDI's many partners and program participants in expanding economic opportunity for low-income Canadians.

Join us and hear inspiring stories of Award nominees and winners who are helping to make Canada a place where everyone has lifelong opportunities to improve their social and economic well-being.

Our Keynote Speaker this year is Robert (Bob) Friedman, General Counsel, Founder and Chair of the Washington-based Corporation for Enterprise Development (CFED).

Bob will be speaking about the dramatic changes underway in US cities that have introduced successful city-wide strategies and programs to financially educate and empower their low- and modest-income residents and the opportunities for similar breakthrough innovation in Canada.

CBC Television anchor, Suhana Meharchand, will also be returning as our emcee.

Tickets: $350 each

Table (10 seats): $3,000

Register Now

Support SEDI

Your support for the 2013 SEDI Awards will help us continue our work with business, government, and community partners across Canada to expand economic opportunity for Canadians living in poverty.

Learn about our sponsorship opportunities

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To attend the national launch, please register by contacting: flm@fcac.gc.ca.

This event is free and space is limited!

November 5-6, 2013 - ABLE Conference (Calgary)
ABLE is a national conference for all stakeholders interested in fostering financial empowerment for people who live on low incomes. This year’s conference will feature a range of innovative financial empowerment initiatives, a closer look at the role of financial institutions and emerging research and policy.

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