Financing Your Kid’s Future With The Canada Child Benefit

Here’s Hoping The New Canada Child Benefit Will Be A Boost For RESP’s   Paying for your kid’s post-secondary education is going to be expensive.  Like.  Really, really expensive. I have a 6-year-old so I think about this a lot. Tuition and books will run you about $7,000 today. But when you add some more on to account for the requisite buses and beers, that number jumps to at least $10,000 – and that’s if they live at home with you. Tack on a modest 3% inflation rate to that, to project 15 years out, and you’re looking at $16,000 a year, for probably four years.  That’s a total of $64,000. Breathe. Just breathe. The $64,000 question:  Is the Canada Child Benefit part of the answer? This is, quite literally, the $64,000 question. And it is better to ask it – and ideally answer it – as soon as possible to give you as much time as possible to save. Perhaps the new Canada Child Benefit will help. The Canada Child Benefit, or CCB, is a new program aimed at helping families with the cost of raising children today and into the future. The cheques (or direct deposits) arrived in […]

Twenty Year-Old Father Taught Me About Financial Responsibility In 30 minutes

I DON’T WANT TO BE BROKE LIKE MY PARENTS WERE WHEN I WAS YOUNG   Financial responsibility follows you for life and one young father shares his life plans with me and with two powerful words “He wants” becoming the driving force behind his journey in all aspects of life. Have you ever asked yourself, “What would you do differently if you could go back in time?” I have, and knowing what I know now there would be some changes to the way that I save money, earn money and invest it. My life was automated because I was so focused on school and working that even I may have paid more than I should have at times. Financial Responsibility was nothing my fellow University friends would think about while in school. It was no big deal to blow money down at the pub or to take a girl out on a lavish date with all the trimmings. Money was no object when it was given by the bank of mum and dad. When I was in my early twenties I bought my first house then sold it to buy a bigger house. I wanted in the real estate game […]

When are you too old for Christmas gifts? : The Saturday Weekend Review #95

MAKING A CHRISTMAS LIST   I know it’s only one day after Halloween and I’m already talking about Christmas gifts and the upcoming holiday season but it’s for good reason. I was sitting at my computer the other day when my wife said that her sister emailed her to say she was putting together the annual Christmas exchange for the family. Now we budget our Christmas expenses each month as a projected expense so when it comes time to go out and buy Christmas gifts we have the money saved. Brilliant, I know but not everyone can do this. Christmas is one of the most expensive holidays of the year for most families especially those with children. What happens though when grandchildren come along? Should you really be buying gifts and having a gift exchange to the tune of $100-$150 per person when you are an adult? So many questions but something my wife and I talked about the other day. Now, don’t get me wrong we are not by any means saying we don’t want to participate in buying Christmas gifts but we question whether it’s worth the high price tag.   Christmas gifts with meaning   Here’s my […]

How far would you go to fund your child’s education? : The Saturday weekend review #75

MAKING SACRIFICES FOR YOUR CHILD   Education in Canada isn’t getting any cheaper and parents are struggling to find ways to help their kids financially. Not all parents feel the need to fund their kids’ education but many would do just about anything. I wasn’t surprised when I read an online article sharing results of a survey of over 600 Canadian families by Abacus Data. The survey was of parents who had children in post-secondary education, on their way to school or have attended in the past 5 years. We know that debt looms high in many Canadian households plus saving for a child’s education can make any budget tight. With over 74% of parents saying they feel financially responsible to help pay for their kids’ education I’m wasn’t shocked to read how far some parents are willing to go to make sure the money is available. I’m not sure if I agree with them all but one thing I am sure of is that if you have a child and can set money aside into a Registered Education Savings Plan (RESP) as soon as they are born you don’t have to do wild and wacky things to find money […]