Securing your Child's Financial Future

Securing your child's financial future

With the numerous ongoing financial obligations that people face when starting a family, saving for your child’s education and future may seem difficult. Did you know that today, a 4 year university degree could cost around at least $50,000, and by 2021, that same degree could cost at least $100,000 due to rising costs? You will undoubtedly want your child to receive an education, though it will obviously cost a lot. How should you pace for your child’s education costs and better their future?

Apply for child care benefits

The Canada child benefit (CCB) is a tax-free monthly payment provided to eligible families to help them with the rising costs of raising children under the age of 18. How much your monthly payment will be, is determined by your income tax and benefit return each year. Hence you must file your return every year to receive the CCB. Your payment amount will also be ressessed every July based on the information from your tax return from the previous year. Currently, you can receive up to a monthly benefit of $533 if you and your child are eligible.

Registered education savings plan (RESPs)

Saving and investing into a RESP is an efficient way to maximize education savings. Tax-deferred investment growth and eligibility for government grants can make a huge difference to your savings and your child’s future. Our advisors will help you on the investment component, based on your risk tolerance and time horizon. In addition to investment growth, through the Canada Education Savings Grant (CESG), you’re eligible for an annual government grant of 20% to a maximum of $500. You may also qualify for other incentives including bonds and grants depending on your province of residence. Consult us to see if your child qualifies for a $1200 Training and Education Savings Grant, just by merely opening an RESP account, without contributing any funds.

Whole life participating plans

A young child may not have any insurance needs, but you may have heard that many people purchase whole life dividend paying insurance for their children. This is because insurance can be a form of savings vehicle, since it regularly pays dividends and a cash value is accumulated within the policy on a tax-sheltered basis. Did you know that just by saving $100/month for 20 years for a newborn, you’re potentially helping him achieve over $300,000 in retirement savings at retirement age, and over $1 million in assets for the child to leave to his estate? Act fast, save now.

We look forward to meeting you

Meet with us today to start laying down the groundwork for your family and enrich your future.