What if you could change the conversation about your child’s future? Would you?
Recently, the federal government announced a payment increase to the Canada Child Benefit (CCB). You can use this increase to create some seed money to put towards your child’s education. If you open an Registered Education Savings Plan, and contribute to it, you could make a real difference in your child’s life. Having an RESP for a child, changes the conversation with your children from “if you go to university or college” to “when you go to university or college” as there is money set aside for them.
The CCB is a tax-free monthly payment that helps families with the cost of raising kids under 18. You qualify for the increase if you have an eligible child and if you and your spouse have filed your 2018 taxes return(s). If you have not filed your 2018 taxes, this is a very good reason to do so as it might mean you are eligible for retroactive benefits and credits.
Because the tax filing deadline this year as been extended, eligible Canadians who are receiving the CCB will continue to receive these payments until end of September 2020. The increased amount will be different for each family depending on size and net income. The maximum increased amount is $300 per child, so if you have two children it might mean an additional $600 per month.
This is the best time to open an RESP, to start making monthly payments and watch your money grow. Even putting away $25 a month will mean an extra savings of $300 per year. Studies show that children with savings to fund their post-secondary education are three times more like to enroll in post-secondary education and four times more likely to graduate; the amount doesn’t matter*.
If you are living on a low income, each of your children will likely be eligible for the Canada Learning Bond. This gives each child a $500 initial payment and then another $100 every year for 15 years in their RESP. To claim the Canada Learning bond, parents need to open RESPs for their children, and don’t have to contribute any money to that account.
Are you ready to start planning for your child’s future? Connect with us to learn more about RESPs.