Taylor is chatting with other parents in the park when the conversation turns to registered education savings plans (RESPs). Taylor thinks that most of what they are saying is incorrect. Which of the following statements about self-directed RESPs is TRUE?

The statement that the government contributes an additional grant for low-income families is true. This is known as the Canada Learning Bond (CLB). The CLB is money that the Government of Canada deposits directly into a child's Registered Education Savings Plan (RESP) to help parents with modest incomes start saving for their child's post-secondary education. No personal contributions are required to receive the CLB. This program is designed to make post-secondary education more accessible for children from low-income families.

B. A family RESP can name more than one beneficiary, provided they are related to the subscriber by blood or adoption.
C. EAPs can be used for various education-related expenses, including tuition, books, accommodation, and transportation, not just tuition.
D. The portion of an EAP consisting of grants and investment earnings is taxable income for the student beneficiary.

1. IFSE Institute. (2023). Canadian Investment Funds Course (CIFC). Chapter 7: Registered Plans, Section 7.4: Registered Education Savings Plans (RESPs). "The Canada Learning Bond (CLB) is available for children from low-income families... No contributions are required to receive the CLB."

2. Government of Canada. (2023). Canada Learning Bond (CLB). Employment and Social Development Canada. "The Canada Learning Bond (CLB) is money that the Government of Canada deposits directly into a child's Registered Education Savings Plan (RESP)."