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Put your Canada Child Benefit Payments to Work!

Written by: Universitas

September 9, 2016

Last July, Canadian families started to receive the new Canada Child Benefit (CCB). Accordingly, the CCB replaces the former benefits offered to families.

To recap this new benefit, the changes to the government program1 are as follows:

  •  The CCB is tax-free. Families will not have to pay taxes on CCB payments received when they file their tax returns.
  •  Better targeted to those who need it most. Families with low- and middle-incomes will receive more benefits, and those with the highest incomes (generally over $150,000) will receive  lower  benefits than under the previous system; and
  •  Enhanced payments for most families: Although this may not be the case for all families, the fact remains that most of Canadian families saw their benefits increase. We’re talking about a  $2,300 annual increase for the year 2016-2017.

Like most parents, perhaps you used this new benefit to extend your summer family vacation, or maybe to cover some back-to-school costs. But now that summer’s over, have you considered putting this money to work by investing in an RESP or beefing up your current plan?

Investing part your CCB in a registered education savings plan (RESP) can definitely be a smart move. Remember that both the federal government and the Quebec government offer substantial grants that top up RESP savings a minimum of 30%2. Universitas Financial has made a calculation tool available to allow you to see just how far a $20 contribution per month can go.

Do the Math

Furthermore, here’s a short video explaining how the Canada Child Benefit works.
Useful information:

  •  To learn all the details regarding the Canada Child Benefit, visit the following website:
  •  To invest part of your CCB payments in an RESP or beef up your current plan, simply contact your scholarship plan representative or our Customer Service. We will be happy to assess your  savings capacity and thus help you achieve your new investment objectives.


1 Source:
2 Canada Education Savings Grant (CESG) of 20% to 40% and Quebec Education Savings Incentive (QESI) of 10% to 20%, based on adjusted family net income. The annual CESG limit is set at $600 and the lifetime limit is set at $7,200 per child. The annual QESI limit is set at $300 and the lifetime limit is set at $3,600 per child. CLB: Canada Learning Bond of up to $2,000 per beneficiary, for children born after December 31, 2003, for whom the family receives the National Child Benefit Supplement. Certain conditions apply. Refer to the prospectus at


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