Saving money

Saving money
Now that they have a budget and manage to stick to it almost every month, Amélie and Simon have noticed that their financial situation is improving.

Now that they have a budget and manage to stick to it almost every month, Amélie and Simon have noticed that their financial situation is improving. They even decided to contribute to a Registered Education Savings Plan (RESP) for Étienne once they pay all their debts and Amélie finds a job. The RESP is a tax-free way to save money for your child’s post-secondary studies.

Contrary to an RRSP contribution, an RESP doesn’t give Amélie and Simon a tax reduction. But they can still benefit from other federal and provincial grants (Canada Education Savings Grant, Québec Education Savings Incentive, Canada Learning Bond). Since these grants are calculated according to the amount invested and your family income, the RESP is especially interesting for low- or middle-income families.

It’s important to plan for everyday expenses as well as those that occur once a year, such as the purchase of snow apparel or the payment for your driver’s license.

Before contributing to a specific RESP, it’s important to find out about the various study programs that are eligible for the plan, the management fees and the minimum amount to pay. Can you transfer the money to another beneficiary? Does it have to be one of your children? What happens if your child doesn’t pursue post-secondary studies? And can you transfer the money invested into an RRSP? Before signing a long-term agreement, ask about the consequences if you stop contributing. It’s wiser to be able to decide to make a contribution when you have the funds than to be locked in to making a monthly or annual contribution that could put your assets at risk.

With their newfound confidence, Amélie and Simon are already thinking of having a second child. Their ACEF consultant told them that they “had the means,” as long as they budgeted their parental leave carefully.

Financial support for your family
  • At the federal level:
  • Canada child tax benefit (A benefit supplement exists for low-income families and for families with a disabled child.)
  • Universal child care benefit
  • Working income tax benefit
  • Tax credits for children under 18 years old

At the provincial level:

  • Child assistance payment (A payment supplement exists for families with a disabled child.)
  • Work premium
  • Shelter allowance program (for low-income families)
  • Special nursing benefit or the special benefit for the purchase of infant formula (for low-income families)
 
Remember

  • Children, like parents, feel the stress caused by financial difficulty.
  • Budgeting lets you know where your money goes and helps you better balance your spending.
  • If money is a cause of concern for you, there are many resources available to help you.