September 9, 2016
In July 2016, Canadian families started receiving the new Canada Child Benefit (CCB), which replaced the former benefits offered to families.
Recap of the CCB1:
- The CCB is tax-free. Families don't have to pay taxes on CCB payments received when they file their tax returns.
- Better targeted to those who need it most. Low and middle-income families get higher payments, and those with the highest incomes (generally over $150,000) receive less than under the previous system.
- Enhanced payments for most families: About 9 out of 10 Canadian families receive higher payments under the CCB than before. Plus, in July 2019, the benefit was increased again to keep pace with the cost of living: the maximum annual benefit is now $6,639 per child uner age 6 and $5,602 per child aged 6 to 17.
Thanks to this enhanced benefit, you might have some extra money to set aside for you children's education. Have you considered putting this money to work by investing in an RESP or beefing up your current plan?
Investing part of your CCB in a registered education savings plan (RESP) can definitely be a smart move. Remember that in Quebec, both levels of government offer substantial grants that top up RESP contributions by at least 30%2. Check out Universitas Financial's calculation tool to see just how far $20 contribution per month can go.
Here’s a short video explaining how the Canada Child Benefit works.
- To learn all the details regarding the Canada Child Benefit, visit the following website: www.canada.ca/en/employment-social-development/campaigns/canada-child-benefit.html.
- 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: http://www.esdc.gc.ca/en/canada_child_benefit.page. Retrieved July 16, 2019.
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. Certain conditions apply. See our prospectus at universitas.ca/en/about-us/documents-resp-forms.
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