Increasing Education Savings for Families Living on Low Incomes: an Outcome Harvest Evaluation

Increasing education savings for families living on low incomes: An outcome harvest evaluation. Table of Contents

Executive Summary ...... 1

Background ...... 4 RESP ...... 4 The Issue ...... 4

Change Strategies ...... 5 Pursue Program-Level Solutions ...... 5 Build Community Capacity ...... 7 Advance Public Policy & Systems Change ...... 9 Impact ...... 12 Next Steps ...... 12 Conclusion ...... 13 Appendix 1 - Partners ...... 14 Endnotes ...... 16

For more information contact:

Lucy Wang Research & Evaluation Coordinator [email protected] 403-272-9323 www.momentum.org

Outcome Harvest contributors: Lucy Wang (lead), Courtney Mo, Lisa Caton, Kelly Dowdell, Lora Pesant, Carlen Scheyk, Fatima Esmail, and Jeff Loomis

Outcome Harvest Substantiators: Dr. Gail E. Henderson (Queen’s University Faculty of Law), Luke Connell (The Omega Foundation &SmartSAVER), Louise Simbandumwe (SEED Winnipeg Inc.) Increasing education savings for families living on low incomes: An outcome harvest evaluation.

Executive Summary From 2008-2020, Momentum Momentum is a changing-making and community partners efforts organization located in Calgary, Alberta that contributed to more than works with people living on low incomes and partners in the community to create a doubling the Canada Learning thriving local economy for all. Bond uptake rate in Calgary from 20% to 52% In 2008, Momentum launched the StartSmart program to support families living on low incomes to open Registered Education Savings Plans (RESPs) to access free Problem government education savings incentives The uptake of Canada Learning Bond such as the Canada Learning Bond (CLB). (CLB) and other governmental education Momentum subsequently partnered with savings incentives remains low among community agencies and advocated for families living on low income. systems level change in order to reach more families and scale up CLB uptake. Objective More families living on low incomes access the Canada Learning Bond (CLB) and other governmental education savings incentives through Registered Education Savings Plans (RESPs).

Vision As part of a strategy for reducing poverty, families living on low income experience the benefits of having savings for their child’s post secondary-education, including increased post-secondary education attainment.

1 With the concentrated community efforts While significant progress has been made of Momentum, partners, collaborators, and to encourage families living on low incomes funders, Calgary is now a national leader in to open RESPs to access government education savings with one of the highest education incentives like the CLB, the data uptake levels of the CLB in the country. shows over 65,000 (48%) eligible children In 2008, only 20% of eligible children in in Calgary have yet to access their CLB Calgary were registered for the CLB resulting payments. This report identifies several next in approximately $2.5 million in claimed steps to inform Momentum’s future work at grants. By 2020, CLB participation more than the community, public policy, and systems doubled, with over 50% eligible children level to make RESPs more accessible for registered for the CLB, translating to $35 families living on low incomes. Outcomes million1 in claimed grants. Calgary always from this evaluation may provide useful had a higher CLB participation rate compared insights for other communities or agencies to the national rate, but the latest results engaged in CLB uptake work. showed a 10% difference, compared to only 4% difference in 2008. “There are multiple factors behind the steadily increasing uptake of RESPs in Canada. Some of these include parents’ trying to keep up with the increasingly high costs of post-secondary education and efforts by the Federal government to expand eligibility and make it easier to enroll in the program. In the case of Calgary, where the rate of uptake has been even faster than the Canadian average, one of the factors is clearly the thoughtful, relentless and multifaceted efforts by Momentum and its community partners to sign up for the benefit. Its proof that grass roots efforts can lead to community-wide This outcome harvest evaluation impact.” demonstrated that the collective efforts – Mark Cabaj, President, Here to There of Momentum and community partners Consulting Inc. significantly contributed to the substantial increase of CLB uptake in Calgary between 2008 and 2021. As shown in Figure 1, Momentum specifically focused on three main strategies to advance CLB uptake in Calgary:

• Pursue Program-Level Solutions: Implement StartSmart program to support families living on low incomes to open RESPs for their children. • Build Community Capacity: Increase community capacity to work together to scale RESP uptake. • Advance Public Policy and Systems Change: Influence change in public policies, structures, and practices that contribute to RESP and CLB uptake. 2 Momentum’s Change Strategies Partners* Outcome Area 1: Pursue Program-level Solutions • 109 Community agencies Implement StartSmart program to support families • 25 Public sector agencies living on low incomes to open RESPs for their • 9 Private sector agencies children and access education savings incentives. • 3 multi-sector collaboratives • Host workshops at Momentum and at *See Appendix 1 for the list of partners community agencies • One-on-one follow-up support services

Outcome Area 2: Build Community Capacity Impact Increase community capacity to work together to scale RESP uptake. The Canada Learning Bond uptake in Calgary • Host RESP sign-up events at Momentum and increased from 20% in 2008 ($2.5M claimed) to partnering agencies 52% in 2020 ($35M claimed) • Train staff from partnering agencies to deliver their own workshops, sign-up events, & one-on- one follow-up support services Momentum’s Target 50% Outcome Area 3: Advance Public Policy & Systems Change

Influence changes in policies, structures, and practices to increase to RESP and CLB uptake. • Identify the challenges of opening RESPs and inform governments, mainstream financial institutions, and school boards • Provide specific recommendations to government and regulatory agencies to promote and improve access to education savings

Outcomes

Programmatic Change

• Over 6,000 participants attended Momentum’s StartSmart workshops and opened over 2,000 RESPs

Community Outreach & Capacity Building

• 386 staff or volunteers from 86 organizations trained to deliver SmartSmart • Over 3,500 RESPs opened by Community Champion participants

Systematic & Public Policy Change

• The official proclamation of Education Savings Week by City of Calgary • Government of Alberta announces RESPs will no longer count towards the $7,000 asset limit for social housing • Momentum and community partners campaign to prevent the discontinuation of the Alberta Centennial Education Savings (ACEG) grant • Momentum advocates to the provincial regulators to better protect low-income families from Group RESP Providers • Momentum advocates to the Government of Canada to address barriers to CLB uptake

Figure 1: Outcome Summary 3 Through an RESP, a child can receive the Canada Background Education Savings Grant, the Canada Learning Research on intergenerational cycles of Bond, and any applicable provincial education poverty shows 25% of children raised in savings incentives. The Canada Education poverty will remain in poverty throughout their Savings Grant (CESG) provides a 20% payment life.2 Children and youth under 18 are most on the first $2,500 of contributions from parents affected by the cycle of poverty and are most or caregivers made into an RESP each year, vulnerable to conditions of poverty. Education for a maximum of $500 per year. The CESG is is a powerful tool to increase the likelihood available to all eligible beneficiaries regardless of upward intergenerational income mobility3 of household income, and middle or low-income and the economic and psychological benefits families may qualify for additional payments of of post secondary education (PSE) have been 10% or 20% on the first $500 of contributions widely documented. made each year.⁸

The Canada Learning Bond (CLB) is money that Education savings can contribute to/are the Government of Canada adds to an RESP linked to increased high school completion specifically for children born in 2004 or later rates and greater post-secondary from low-income families. The initial payment participation. 4,5 is $500, followed by $100 for each year of eligibility, to a maximum of $2000. Contributions are not required for a child to receive the CLB. It For example, a 2003 report on can also be claimed retroactively for each year StatsCan’s Postsecondary Education the child has been eligible by opening an RESP Participation Survey showed that youth before the child reaches 21 years of age. who have set aside some savings for their education are 50% more likely to In addition to the federal government savings participate in PSE than those who have incentives, some provinces also offer additional not.6 To encourage families to save for a incentives to encourage families to save for a child’s education after high school, the child’s postsecondary education. For example, federal government and some provincial the province of British Columbia contributes governments offer a number of education $1,200 to eligible children through the British savings incentives through Registered Columbia Training and Education Savings Education Savings Plans (RESP). Grant. In the past, the Government of Alberta have offered $500 per child through the Alberta RESP Centennial Education Savings (ACES) grant from To access the Canadian government 2005 to 2015. education savings incentives, parents have to open an Registered Education Savings Plan (RESP) with a bank, financial planner, The Issue group plan provider, or other financial Despite the various government incentives institutions. There are two main types of available for children’s education savings, RESPs, the individual and family plans RESP openings and CLB uptake remains low name a single child or their siblings as for families living on low incomes.⁹ In 2008, the beneficiaries, or the group plan pools only 20% of eligible children in Calgary had investments together for multiple Canadian received the CLB. Many families living on children. There are also diverse savings low incomes are not aware that they do not options within an RESP, including but not have to contribute any of their own money to limited to savings deposits, guaranteed access the benefits.10 Families that do want investment certificates, and mutual funds, to open an RESP for their children often face which may or may not have fee options.7 4 many individual and institutional barriers to change strategy was to pursue innovative RESP access. In exploring different options to program-level solutions. In 2008, Momentum enhance CLB uptake on behalf of Employment launched StartSmart, a matched savings and Social Development Canada, Robson program that offers workshops and one-on- (2016) lists some of these challenges below:11 one follow up support for participants to open RESPs for their children and access education Individual Institutional savings incentives. Learning from participants challenges challenges with lived experience and best practices from • Parents’ perceived • Complexity of choice other organizations, Momentum pursued many financial strain/ability among both RESP innovative solutions both to increase awareness to save promoters and products about the education savings incentives as well • Parents’ relationship • Complexity of the RESP as enhance direct support services to make the with financial instrument RESP opening process easier for participants. institutions • Participation in • Parents’ knowledge CLB through RESP and attitudes regarding promoters Momentum explored a number of creative ways RESPs • Federal and provincial to increase public awareness about education • Parents’ tax-filing program differences savings and reach more families. Soon after behaviour • Product and program StartSmart launched in 2008, Momentum • Parents’ financial knowledge of retail staff capability, literacy, and among promoters approached and convinced ten community numeracy • Market conduct of some agencies to host StartSmart workshops at • Parents’ persistence promoters their locations for their participants/clients. In in completing RESP • Adequate program addition, Global TV interviewed Momentum’s process resources StartSmart facilitator to increase public awareness about education savings which led to many callers inquiring about the StartSmart Change Strategies program. Momentum subsequently appeared Recognizing education savings as a two- in other media coverage over the years and generation approach to poverty reduction and partnered with over 90 agencies to continue to prevention, Momentum set a goal to increase raise public awareness on education savings the take-up of the Canada Learning Bond and promote StartSmart. (CLB) to 50% by 2018. Momentum focused on three main strategies to achieve this goal. Perhaps Momentum’s most creative innovation Momentum first launched the StartSmart to promote RESPs was the publication of the program to work directly with families living children’s book “Does a Bear Work There?” in on low incomes to open RESPs. Momentum 2017. The book shares the possibilities an RESP then took a community leadership role and can create for a child’s future and it was written engaged stakeholders from public, private, by Momentum staff. Though over 2,500 copies and community sectors to work together to of the book were shared with families and increase RESP and CLB uptake. Finally, by partnering agencies, the impact of the book was leveraging community partnerships and existing not measured. relationships, Momentum was able to advance several public policy and systems changes Reaching more low-income families to that reduced RESP and CLB uptake. Figure increase awareness about RESPs is only 2 shows the cumulative outcomes achieved part of the solution to RESP and CLB uptake. by Momentum and community partnerships As Momentum worked with program between 2008 and 2020. participants to open RESPs, other barriers emerged including access to identification, 1. Pursue Program-Level Solutions feeling comfortable and confident at a bank To encourage families living on low incomes appointment, lack of time, language barriers, in Calgary to open RESPs, Momentum’s first and financial literacy. 5 Systems Changes - Outcomes related to program, community, and systems change

(1) Government of Canada (11) After Momentum (12) Momentum submits Program-Level Solutions data show just 20% of eligible participant raises the issue of letter to Minister of Innovation children from low-income RESP asset limits affecting their & Advanced Education to Community Capacity families in Calgary have eligibility for social housing, advocate for the continuation obtained their CLB (Mar 2008) Momentum meets and raises of the Alberta Centennial Policy and Systems Change issue with Ministry of Seniors Education Savings (ACES) grant for lower income families and Housing (Nov 2014) (22) Momentum contributes (23) In partnership with (32) Momentum publishes (Mar 2015) to the research report The SmartSaver and Omega national research Public (2) Human Resources and Regulation of Group Plan Foundation, Momentum Policy Options to Better Social Development Canada RESPs and the Experiences becomes a beta-testing site Enable Education Savings (13) Government of Alberta of Low-Income Subscribers for the CLB online registration By Families on Low Incomes (HRSDC) awards contract to (10) City of Calgary Mayor Momentum to develop and introduces Bill-25 into the (Jun 2018) portal, which is now the official (June 2021) proclaims November 17-21 legislature and announces the SmartSaver RESP/CLB portal implement the StartSmart Education Savings Week, at education savings program ACES grant will be terminated in (Apr 2019) the request of Momentum to July 2015 (Mar 2015) (Jun 2008) promote RESPs with financial institutions and school boards (21) Momentum launches (Q2 2014) the children’s book “Does (24) Funded community (31) 52% of eligible children (3) Momentum launches (14) The Financial a Bear Work There?” to partners host most successful from low-income families in StartSmart program and Empowerment Collaborative promote RESPs with Education Savings Week to Calgary have obtained their partners with 10 community is established in Calgary and families and community date, 1000 people show up at CLB (Mar 2021) agencies to host workshops names education savings as a partners (Oct 2017) 5 sign-up events (Nov 2019) (Sep 2008) (9) Momentum launches StartSmart Facilitator Training pillar of focus (Jun 2015) program, providing training to community champions so they can deliver RESP (20) Calgary Catholic (30) Momentum launches a (25) Momentum shares 6 (4) Momentum launches information directly to their (15) A local credit union School District shares CLB policy papers with regulators free, on-demand Education Bank Buddy Initiative where own participants (May 2014) supports RESP uptake by information with all families on the impact of group Savings Money Management volunteers assist participants training staff and building who registered children for plan RESP on low-income course to complement ongoing at the bank to open RESPs RESP openings into their 2016 Kindergarten in the Catholic subscribers (Dec 2019) community-based promotion (Q4 2010) business plan (Q4 2015) School District (Q2 2017) and support (Feb 2021)

(8) Momentum submits letter to the Chief Superintendents and (26) Max Bell Foundation (5) TD Bank invites (16) Government of Alberta the Calgary Board of Education (19) Momentum launches awards Momentum a grant Momentum to speak to announces RESPs will no (29) Momentum trained and Calgary Catholic School the CLB & RESP Enrollment to research and advocate for the sales team about longer count towards the $7000 over 350 community staff District on the importance of One-Time-Grant pilot project changes to policies, structures, StartSmart and the asset limit for social housing, and volunteers from over RESP promotion at the school and selects seven community and practices to increase challenges participants face and quotes Momentum’s 80 community agencies to board level (Jun 2013) organizations to help open education savings for families at the bank (Q4 2010) Executive Director in the press deliver their own StartSmart release (Mar 2016) 198 RESPs (Q4 2016) living on low incomes (Dec 2019) program (Dec 2020)

(7) Momentum hosts Calgary’s (6) Calgary Registries agrees (17) Alberta Works agrees to (27) Momentum announces first RESP sign-up event, (18) Momentum publishes and to directly bill Momentum include CLB announcements the closure of StartSmart bringing financial institutions promotes education savings in for participants’ identification in all cheque statements in program and participants (28) StartSmart reached over and families together to a report Improving Education document payments, so staff November to coincide with are referred to BowWest 6,500 participants and over open 75 RESPs onsite at Outcomes through Children’s member is no longer required Education Savings Week Community Resource Centre 2,000 RESPs were opened. Momentum (Apr 2013) Education Savings (May 2016) to be present to pay (Q3 2011) (Q1 2016) (Dec 2020) (Dec 2020) 2008-2014 2015-2018 2019-2021 Figure 2: Education Savings Outcomes Map and CLB uptake more effectively by scaling up the number of people who can access information from the StartSmart workshops.

Through many of the innovative program- level solutions, Momentum’s StartSmart program reached over 6,500 participants and over 2,000 RESPs were opened between September 2008 and December 2020. However, Momentum decided to close the StartSmart program in December 2020 based on available resources and diminishing returns of the program approach.

“Momentum’s StartSmart program reached Children’s book cover “Does a Bear Work There?” over 6,500 participants and over 2,000 RESPs were opened” To increase access to identification required for RESP and CLB sign up, Momentum had a small budget to help participants cover the 2. Build Community Capacity costs, but staff needed to go with participants Momentum’s second change strategy was to to the registry to pay the fee. Momentum focus on building community capacity in an effort partnered with Calgary Registries to directly to scale RESP and CLB uptake in Calgary. Finding bill Momentum for participants’ identification community champions was not easy at first. document fees. This administrative process Given the many challenges that families living saved Momentum staff a significant amount of on low incomes experience and the competing time so they could support more families. priorities for families, it was understandable that the case for RESPs was not well understood by To address the barriers that participants many community organizations. Momentum experienced at the bank, Momentum staff engaged and convened stakeholders from public, began to accompany participants on their private, and community sectors to share research RESP sign-up appointments, but the demand on the value and importance of education was too high for such individualized support. savings and to work together to increase RESP To meet this demand, Momentum created the and CLB uptake. Bank Buddy initiative where volunteers met Momentum participants at their own bank Inspired by a ‘Free Money Party’ event from to provide support in setting up a savings or the Peel Region in Ontario,12 Momentum chequing account, and/or a registered account hosted Calgary’s first RESP sign-up event like the RESP. in 2013, bringing financial institutions and families together to open 75 RESPs onsite at When the COVID-19 pandemic forced Momentum. The event was so successful that it organizations to stop all in-person services in was subsequently held every year in Calgary and early 2020, Momentum accelerated its plans to replicated by other community organizations. begin offering programs online. Over several months, Momentum developed the On Demand To further streamline the RESP sign-up Education Savings Money Management process, Momentum supported the Omega Course which launched in 2021. This free online Foundation’s SmartSaver initiative to launch workshop is available to anyone, anywhere, the CLB online registration portal. In April 2019, anytime, and has the potential to increase RESP Momentum was one of the beta testing sites 7 Figure 3: Momentum’s StartSmart workshop attendance and RESP uptake, September 2008 to December 2020 for the MySMARTfuture Program, enabling opened by participants/clients reached through Momentum CLB eligible families to use the Community Champions. registration portal and receive $150 towards an RESP opened and $75 for the family. To date, 503 applications were made through the Momentum participates and contributes to SmartSaver online portal from Momentum various local and national working groups and participants. The registration portal is now used collaboratives to advance RESP and CLB uptake. in many RESP sign-up events to streamline the In 2015, the Calgary Financial Empowerment application process for participants, and more Collaborative was formed by founding partners recently expanded to include an RESP training including United Way of Calgary and Area, the portal for members to get training materials City of Calgary, Vibrant Communities Calgary, and other resources related to CLB uptake. the Government of Alberta, Bow Valley College, and Momentum. Now known as Aspire Calgary, As more community interest emerged about this multi-sector collaborative works together the StartSmart program, Momentum launched to increase community capacity and local the StartSmart Facilitator Training program access to financial empowerment programs in 2014, providing training to community and services, including education savings. At champions so they could deliver RESP and CLB a national level, Momentum participates in the information directly to their own participants or Canada Learning Bond Champions’ Network, a clients. This was an important step to engage working group of community service providers, community partners and to increase RESP financial institutions, government departments and CLB uptake at a much larger scale. From and agencies, and other community-based 2014 to 2020, Momentum trained over 350 organizations sharing and working together community staff and volunteers from over to promote education savings across Canada, 80 community agencies to deliver StartSmart as well a policy roundtable on children’s workshops and support families to open education savings.13 an RESP. Moreover, over 3,500 RESPs were 8 successes were achieved in this strategy, Momentum also experienced challenges to influence systems change.

Municipal, provincial, and federal governments From a public policy perspective, Momentum was able to contribute to several policy and systems changes successes. The first municipal-level contribution was Momentum’s request to introduce Education Savings Week in Calgary in 2014. Education Savings Week is a nationally recognized event dedicated Calgary’s first RESP sign-up event, April 19, 2013 to encouraging Canadians to start saving early for a child’s post-secondary education.14 Through Aspire and other collaboratives, Taking the learnings from the national CLB Momentum and partnering agencies worked Champions’ network as a scalable strategy to on a number of initiatives to collectively promote RESPs with financial institutions and scale up RESP and CLB uptake. For example, school boards, Momentum was successful in Aspire and Momentum were able to launch getting the Mayor to officially proclaim a week the CLB and RESP Enrollment One-Time- in November as Calgary’s Education Savings Grant pilot project in 2016 with support of the Week. United Way of Calgary and Area. While United Way provided the funding through Aspire, A significant provincial policy success was Momentum provided support and training to Momentum’s advocacy efforts to exempt seven community organizations to open 198 RESPs from Social Housing asset testing rules. RESPs in the community. The success of this The issue was first identified by StartSmart project enabled Aspire and Momentum to participants in 2014, when they were denied maintain the funding model with United Way access to housing support because their as a capacity building tool to ensure agencies savings plan pushed their assets beyond the have sufficient resources to support RESP $7,000 limit, even when they met the income openings in the community. requirements. Momentum raised the issue and received a commitment from Ministry of Seniors and Housing to adjust the social Momentum trained over 350 community housing asset requirements to exempt RESPs, staff and volunteers from over 80 as well as Registered Disability Savings Plans community agencies to deliver from the $7,000 asset limit. Then in March StartSmart program 2016, the Government of Alberta announced the legislative changes to implement these 3. Advance Public Policy & Systems Change exemptions and quoted Momentum’s 15 While working directly with families and Executive Director in the press release. other community agencies, Momentum identified many system-level barriers as well “By making this change, we are ensuring as opportunities for families living on low that low-income Albertans are not being incomes to open RESPs and to receive the penalized for saving for their future security CLB. Leveraging community partnerships or their children’s education.” and existing relationships, Momentum - Lori Sigurdson, Minister of Seniors was able to advance several public policy and Housing and systems changes in reducing system level barriers to RESP uptake. While many

9 Similarly, at the recommendation of Momentum and community partners, Alberta Works agreed to include CLB announcements in all cheque statements and to have a StartSmart e-poster on their office screen in November 2016 to coincide with Education Savings Week. This simple administrative change was a step towards shifting the provincial government’s commitment to encourage CLB uptake in Alberta.

Another significant body of work for Momentum is advancing research and policies to make Group RESP products safer for families living on low incomes. Group RESPs have long been the subject of recurring negative media attention, due to the high sales fees charged to investors, contribution requirements, and the terms and rules restricting access to funds on maturity.16 Low- Report on The Regulations of Group Plan RESPs and the Experience of Low-income Subscribers, 2018 income families often invest in Group RESPs as a result of targeted marketing, despite the product being unsuitable for families with low From this national working group, Momentum or precarious income. and colleagues raised the issue of group RESPs with provincial regulators. In 2019, Momentum In partnership with SEED Winnipeg, Menno submitted two policy briefs to Alberta regulators, Simmons College, Queen’s University highlighting the impact of Group RESPs on Faculty of Law, and Legal Help Centre of families with low incomes and recommending Winnipeg, Momentum contributed to the steps to improve investor protections. Group RESP Research and Education Project in 2017 aimed to examine the regulation of Unfortunately, not all policy advocacy efforts group plan RESPs and the experiences of were successful. When the Government low-income subscribers. In June 2018, the of Alberta announced the phasing out of interdisciplinary research team published the Alberta Centennial Education Savings a report on The Regulation of Group Plan (ACES) grant in 2013, Momentum, along RESPs and the Experiences of Low-Income with community partners implemented Subscribers and provided recommendations several policy campaigns to prevent the to improve compliance of securities rules discontinuation of the ACES grant, or to at least by group plan providers. The team also maintain it for people on lower-incomes. Some developed public legal education materials of the advocacy efforts included submitting for community workers about education letters on behalf of the Alberta Asset Building RESPs. Overall, the research findings Collaborative to the Minster of Advanced emphasized the need to provide accessible Education, as well as sharing the publication and neutral information about RESP Education Savings: The Value of Provincial investment options to low-income families. Government Investment with the provincial government and media. Unfortunately, the policy efforts were unable to save the ACES A national working group was also established grant and the program was terminated in July as a result of the research to advocate better 2015. Despite the unsuccessful campaign, policies to protect families living on low incomes. Momentum partnered with the Omega

10 Foundation’s SmartSaver initiative on the “Get products suitable for families living on low My ACES” campaign to promote sign-up for incomes, many bankers did not know a client the ACES grant before its cancellation. can open an RESP without making regular contributions of their own. Momentum At the federal level, Momentum has worked provided education sessions to staff from closely with the Employment and Social several banks in an effort to make RESP Development Canada (ESDC, formerly known openings easier, more welcoming, and more as Human Resources and Social Development relevant to families living on low incomes. Canada) over the years to advance CLB uptake However, financial institution engagement and provide feedback on CLB promotion and in CLB is mixed. While some banks held policy. ESDC supported many of the RESP RESP and CLB learning events for their staff sign-up events in Calgary by directly mailing and even adopted their promotion into their out letters to parents of CLB eligible children business plans, the general uptake from to inform them about their child’s eligibility financial institutions at a systems level was and to promote the sign-up events. Receiving not as successful. the ESDC letters significantly increased CLB uptake17 and ESDC’s investment in the School Boards promotional letters were critical for many Similar to the advocacy work with financial families to trust that the RESP sign-up events institutions, engagement with school boards hosted by Momentum and funded partners was also mixed. Momentum developed were legitimate. strong partnerships with specific schools such as the Louise Dean School, a public When ESDC decided not to send out letters to school for current and expectant teenage CLB eligible families living in Calgary in 2018, mothers, to host StartSmart workshops and RESP sign-up events experienced a significant attended various Calgary Board of Education reduction in attendees with just over 100 (CBE) school resource fairs. At the systems attendees. Recognizing the importance of level, Momentum submitted letters and ESDC letters to CLB uptake, Momentum and met with the Board of Trustees and Chief community partners advocated to ESDC for Superintendents of the CBE and the Calgary the promotional letters to resume, which Catholic School District (CCSD) to discuss the contributed to ESDC’s decision to resume importance of RESP promotion at the school sending out the letters the following year. board level. Once the promotional letters were sent again in 2019, RESP sign-up events in Calgary had One successful engagement included staff over 1,000 people, some attending holding from Momentum and the United Way of the CLB letter in their hands. Calgary and Area meeting with the CBE and CCSD superintendents in 2017. This led to the Financial Institutions CCSD agreeing to share CLB information with The strategy to engage with financial all families that registered their children for institutions was important to reduce the Kindergarten. Unfortunately, the engagement systemic barriers for RESP openings. did not continue and overall, advocacy efforts In addition to partnering with financial with the school boards have been largely institutions for the RESP sign-up events, unsuccessful to date. Momentum engaged with many banks and credit unions in Calgary to learn about the financial services they offer related to RESPs and to share information about StartSmart. Momentum discovered that, while some financial institutions provided services and

11 Figure 4: Calgary CLB Participation Rate, compared to National Participation rate 18

While concentrated community efforts Impact undoubtedly contributed to higher CLB uptake Since the Canada Learning Bond (CLB) is the in Calgary and higher grant amounts for children federal grant added to an RESP for children from living on low incomes in Calgary, it is important low-income families, the CLB participation rate to point out that other variables may have also was examined to understand the impact of the influenced the high CLB uptake in Calgary. For cumulative efforts made by Momentum, partners, instance, a prolonged economic crisis in Calgary, collaborators, and funders. resulting in higher unemployment21 and the COVID-19 pandemic impacted peoples incomes In 2008, only about two out of ten eligible children and CLB eligibility.22 Furthermore, a recent policy in Calgary received the CLB, which is approximately change of allowing the spouse or common 5,000 out of the 24,700 (20%) CLB eligible children. law partner of a child’s primary caregiver to By 2020, CLB participation more than doubled, with request education savings incentives for the five out of ten eligible children in Calgary received child, is credited by ESDC for increasing CLB the CLB, approximately 70,900 out of 135,900 uptake the most in 2019.23 Momentum did not (52%) CLB eligible children. As shown in Figure 4, seek this policy change, but is a good example Calgary always had a higher CLB participation rate of other variables impacting CLB uptake, and compared to the national rate, but the latest results a good example of the potential for policy showed a 10% difference, compared to only 4% change in increasing uptake. Additional policy difference in 2008. considerations are discussed below.

Another indicator on the progress of CLB uptake is the grant amounts claimed between 2008 and Next Steps 2020 by families in Calgary. In 2008, only about Despite the substantial increase of Canada Learning $2.5 million19 was claimed, and by 2020, over $35 20 Bond (CLB) uptake in Calgary so far, the data shows million was claimed. The cumulative CLB amount over 65,000 (48%) eligible children in Calgary have claimed shows a significant increase in education yet to access their CLB payments, which translates savings for families living on low incomes. to over $32 million in unclaimed grants for 2020.

12 Going forward, Momentum will continue to work registration process to other provinces and at the community, public policy, and systems levels territories, supporting an additional 9,000- to make RESPs more accessible for families living 9,200 children each year across Canada to on low incomes so they can access CLB and other access between $4.6 and $8.1 million dollars education savings incentives. of CLB funds.

At the community level, Momentum continues to offer an online, on-demand workshop on RESPs Conclusion and the CLB, as well as building community capacity through the Aspire Calgary financial The efforts to advance education savings empowerment collaborative by offering training to uptake are multifaceted and involve front-line staff on RESPs and hosting a community many individuals, groups, communities, of practice to support practitioners in sharing organizations, and sectors. There are several best practices and resources, continuing to build factors that influenced the success of the their knowledge and skills, and advancing their CLB uptake in Calgary that are beyond the professional practice. scope of this evaluation. Nevertheless, this outcome harvest evaluation demonstrated On the policy front, Momentum has several that the collective efforts of Momentum and ongoing initiatives. Building on the national community partners significantly contributed Group RESP advocacy efforts with partnering to the substantial increase of CLB uptake in agencies, Momentum continues to advocate Calgary between 2008 and 2021. that regulators review and seek solutions on the negative impact Group Plan RESPs can have for Specifically, Momentum’s contributions included: low-income families. • Pursue program-level solutions: Implement StartSmart program to support families Additionally, Momentum has recently published living on low incomes to open RESPs for a paper on policy alternatives to address the their children. complex systems barriers to setting up RESPs • Build Community Capacity: Increase and receiving the CLB and other government community capacity to work together to grants.24 The policy research report, Public Policy scale RESP uptake. Options to Better Enable Education Savings by • Advance Public Policy & Systems Change: Families on Low Incomes, aims to advance policy Influence changes in policies, structures, solutions at the federal and provincial levels and practices that contribute to RESP and to dramatically, systemically, and sustainably CLB uptake. ensure all eligible children have access to the CLB. The recommendations are to: While significant progress has been made to encourage families living on low incomes to open 1. Establish a new Canada Education & Training RESPs to access government education incentives Account for children that do not have RESPs, like the CLB, there are still many eligible families enabling 1.2 million children to access not accessing these incentives. Momentum is education savings assets amounting to interested in exploring a more effective and $183.5 million in the first year alone. efficient strategy for establishing education 2. Screen new Canada Student Loan applicants savings for low-income children in Canada. Going for CLB eligibility, making it easier for forward, Momentum will continue to work at the 137,000-144,000 post-secondary students to community, public policy, and systems level to recover up to $136 million in unclaimed CLB make RESPs more accessible for families living benefits each year. on low incomes, with considerable efforts being made to advance policies for universal uptake of 3. Expand the Education Savings Referral RESPs and the CLB for children in Canada. Service (ESRS) from Ontario’s online birth 13 Appendix 1 - Partners

Community Partners

• 12 Communities Safety Initiative • Brenda Strafford Society • Community Options • First Evangelical Lutheran Church • READ Saskatoon • Sunrise Native Addiction Services • Aboriginal Futures • Calgary Aboriginal Friendship Centre • Credit Counselling Society • Further Education Society • Riel Institute for Learning • The Alex Youth Centre • Action for Healthy Community • Calgary Alternative Support Services • Discovery House • Genesis Mosaic Family Resource Centre • Safe Harbour Society • The Learning Partnership • Aga Khan Social Welfare Board • Calgary and Area Child Advocacy Centre • E4C • Habitat for Humanity • SAIT Chinook Lodge • The Mustard Seed • Agape Languages Centre • Calgary Bridge Foundation for Youth • Early Childhood Coalitions Collaborating • Heart of the North East • Salvation Army - Red Deer • Thornhill Childcare Centre • Alcove Addiction Recovery for Women • Calgary Catholic Immigrant Society • Early Childhood Development Support Services • Heartland Agency • Salvation Army Edmonton • United Way of Calgary and Area • Aspen Family and Community Network Society • Calgary Centre for Newcomers • Early Childhood Service Providers in Bowness • Highbanks Society • Salvation Army Parent Support Group • United Way Poverty Reduction Coalition • SEED Winnipeg • Calgary Chinese Community Service • Aventa Addiction Treatment Centre for Women Association • Emma Maternity House Society • Hillhurst Sunnyside Community Association • Single Parent Support Group • Urban Society for Aboriginal Youth • Awo Taan Parent Link • Calgary Drop-In and Rehab Centre • Epilepsy Association of Calgary • Hull Services • Skyview Ranch Church • Village Square Parent Link • Ben Calf Robe Society • Calgary Huntington Hills Community • Ethno Cultural Council of Calgary Association • SmartSaver • Huntington Hills Community Association • Bow Valley Early Childhood Development • Wild Rose Community Connections Coalition • Calgary Immigrant Educational Society • Families Matter Society of Calgary • Immigrant Services Calgary • Sonshine Community Services • Women In Need Society of Calgary • Bowwest Community Resource Centre • Calgary Immigrant Women’s Association • Family & Community Support Services Cochrane • Inn From the Cold • South Calgary Community Church • YMCA • Boys & Girls Clubs Big Brothers Big Sisters of • Calgary Interfaith Food Bank Edmonton • Ismaili Council of Prairies • Family Services of Central Alberta • Youville Recovery Residence • Sunrise Community Link Resource Centre • Calgary Learning Village Collaborative

14 • Johnstone Daycare Public Sector • YWCA of Calgary • Calgary Urban Project Society • Alberta Health Services • KARA Family Resource Centre • Bow Valley College • Calgary Vietnamese Women’s Association • Calgary Catholic School District • Making Changes Association • Calgary Foothills Primary Care Network • Career Trek - Winnipeg • Calgary Housing Company • Legal Help Centre Winnipeg • Calgary Police Services • Maple Leaf Academy • Calgary Public Library • Carya • Calgary Regional Home Visitation Collaborative • Metis Calgary Family Services • City of Calgary • Catholic Family Service • City of Chestermere • Metis Family Resource Centre • City of Edmonton • Central Alberta Immigrant Women’s • City of Red Deer Association • Edmonton Public Schools • Money Mentors • Government of Alberta • Children’s Cottage Society • Government of Canada • Multicultural Health Brokers Co-op • Louise Dean School • Chinook Learning Services • Menno Simons College • North Central Family Support Program • Mosaic Primary Care Network • City West Childcare and Community Support • Queens’ University Society • SAIT Polytechnic • North East Family Connections Society • Town of Banff • Closer to Home Community Services • Town of Canmore • Omega Foundation • Town of Cochrane • Collaboration of Services for the Hispanic • Town of Okotoks Community • University of Calgary Native Centre • Pathways Community Services Association • Wetaskiwin School District • Common Good • Perinatal Outreach Program • Community Links -Airdrie Private Sector • Prosper Canada • ATB Financial • Bank of Montreal • Bromwich+Smith Inc. • ConnectFirst Credit Union Multi-Sector Collaboratives • Imperial Oil • Royal Bank of Canada • ABLE Network • Scotia Bank • Aspire Calgary • Servus Credit Union • Canada Learning Bond Champions Network • TD Canada Trust

15 Endnotes

1. Calculated based on 70,900 children who received the CLB x $500 per year =$35,450,000 2. Briggs, A. & Lee, C.R. (2012). Poverty Costs, An Economic Case for a Preventative Poverty Reduction Strategy in Alberta. Vibrant Communities Calgary and Action to End Poverty in Alberta. https://ccednet-rcdec.ca/sites/ccednet-rcdec.ca/files/vibrant_communities_ calgary_action_to_end_poverty_in_alberta.pdf 3. Simard-Duplain, G., & St-Denis, X. (2020). Exploration of the role of education in intergenerational income mobility in Canada: Evidence from the longitudinal and international study of adults. Canadian Public Policy, 46(3), 369-396. 4. Elliott, W., Choi, E. H., Destin, M., & Kim, K. H. (2011). The age old question, which comes first? A simultaneous test of children’s savings and children’s college-bound identity. Children and Youth Services Review, 33(7), 1101-1111. 5. Prosperity Now. (June 2014). Scholarly research on children’s savings accounts. https:// prosperitynow.org/sites/default/files/resources/CSA_research_fact_file_08-2016.pdf 6. Barr-Telford, L., Cartwright, F., Prasil, S., & Shimmons, K. (2003). Access, Persistence and Financing: First Results from the Postsecondary Education Participation Survey, PEPS. Statistics Canada, Culture, Tourism & the Centre for Education Statistics. 7. Employment and Social Development Canada. (2020). Canada Education Savings Program - 2019 Annual Statistical Review. https://www.canada.ca/en/employment-social- development/services/student-financial-aid/education-savings/reports/statistical-review.html 8. Employment and Social Development Canada. (May 20, 2021). It pays to plan for a child’s education. https://www.canada.ca/en/employment-social-development/services/ student-financial-aid/education-savings/resp/pays-to-plan.html 9. Frenette, M. (2017). Investments in Registered Education Savings Plans and Postsecondary Attendance. Economic Insights. No. 071. Statistics Canada. 150 Tunney’s Pasture Driveway, Ottawa, ON K1A 0T6, Canada. 10. Privy Council Office. (2018).Behavioural Insights Project: Increasing Take-Up of the Canada Learning Bond. Impact and Innovation Unit. https://www.canada.ca/en/ innovation-hub/services/reports-resources/behavioural-insights-project.html 11. Robson, J. (2016). Enhancing access to the Canada Learning Bond. Discussion paper prepared for Canada Education Savings Program. Employment and Social Development Canada. https://carleton.ca/politicalmanagement/wp-content/uploads/FINAL_clean-1.pdf 12. Region of Peel (Feb 6, 2013). Canada Learning Bond Community Event. https://www. peelregion.ca/scripts/calendar/calendar.pl?cal=home_ page&action=day&d=6&m=1&y=2013 13. Federation of Ontario Public Libraries. (December 29, 2017). The annual meeting of the Canada Learning Bond Champions’ Network. http://fopl.ca/news/the-annual- meeting-of-the-canada-learning-bond-clb-champions-network/#:~:text=The%20CLB%20 Champions'%20Network%20is,raise%20awareness%20of%20education%20savings

16 14. Employment and Social Development Canada. (November 2019). Government of Canada celebrates Education Savings Week, November 17-20, 2019. https://www.canada.ca/en/employment-social-development/news/2019/11/government- of-canada-celebrates-education-savings-week-november-17-23-2019.html 15. Government of Alberta. (March 24, 2016). Savings plans exempt from housing eligibility rules. https://www.alberta.ca/release.cfm?xID=414579C28C4D2-E1F3-1A23-2C11D5 9AF952D52D 16. Labby, B. (August 26, 2019). Saving for your kids’ education: A cautionary tale. CBC News. https://www.cbc.ca/news/canada/calgary/group-resp-warning-fees-1.5257810. 1 7. Privy Council Office. (2018).Behavioural Insights Project: Increasing Take-Up of the Canada Learning Bond. Impact and Innovation Unit. https://www.canada.ca/en/ innovation-hub/services/reports-resources/behavioural-insights-project.html 18. Employment and Social Development Canada. (March 31, 2021). Canada Learning Bond (CLB) Participation Rate (percentage), Cumulative Number of Beneficiaries, and Cumulative Number of Eligible Children by Forward Sortation Area. https://open.canada.ca/data/en/dataset/ce99c2c9-c224-43eb-aef0-1f379b70c91d 19. Calculated based on 5,000 children who received the CLB in 2008 x $500 per year =$2,500,000 20. Calculated based on 70,900 children who received the CLB in 2020 x $500 per year =$35,450,000 21. Statistics Canada. Table: 14-10-0096-01 Labour force characteristics by census metropolitan area, annual. 22. ATB Economics. (November 25, 2020). Jobs are where the rubber hits the economic road. https://www.atb.com/company/insights/the-owl/recessions-in-alberta/ 23. Employment and Social Development Canada (June 2020) CESP -RESP provider user guide Education Savings Incentives. https://www.canada.ca/en/employment-social- development/services/student-financial-aid/education-savings/resp/resp-promoters/user- guide/section2.html#bb 24. Momentum. (July 2021). Improving Education Savings: Policy Options for Families on Low Incomes. https://www.momentum.org/educationsavingsoptions