Canada and the U.S. are giving children money to build savings. But the rules on keeping it are very different

Canada and the United States are both taking steps to help children build financial assets early in life, but they differ on what happens when those children reach adulthood.

This month, the U.S.

Treasury began automatically opening Trump Accounts for eligible American children .

Children born between 2025 and 2028 can receive a one-time US$1,000 federal contribution invested in the stock market, though a parent or guardian must still claim it.

Beginning in 2028, Canada will automatically open registered education savings plans (RESPs) for eligible children from low-income families to help them receive the Canada Learning Bond, worth up to $2,000 without family contributions.

But there is a crucial difference: Americans can keep their money invested for retirement, while Canadians who do not pursue eligible post-secondary education must return their Learning Bond to the government.

When families must sign up for these programs, children who need help most often miss out.

However, getting money into an account is only half the challenge.

Beneficiaries must also be allowed to keep it.

Canada’s savings gap Canada’s education savings system has two main components.

The Canada Education Savings Grant matches 20 per cent of family contributions to an RESP, up to $500 a year.

Because families must contribute their own money to receive the grant, the benefits tend to favour those who can afford to save.

Government evaluations have found the benefits usually tilt toward higher-income households .

To address this gap, Ottawa introduced the Canada Learning Bond in 2004.