Written by: Kaleido
The Universal Canada Child Benefit (UCCB) is financial support offered by the Government of Canada to families with children. Since 2006, the UCCB allowed parents with children under 6 years old to receive $100/month per child.
The first UCCB enhanced payment will be issued on July 20, 2015, and will include any retroactive payments for the period of January to June 2015.
Are you expecting to receive enhanced UCCB payments? The following chart presents the actual amount you could end up with based on your family’s financial situation.
The above is an assessment carried out by Kaleido, based on 2015 tax rates in Quebec and in Canada. Other factors could influence the net annual enhanced amount received.
There are several options on how to invest or use your UCCB payments, but most financial experts agree that investing part of the enhanced UCCB in a registered education savings plan (RESP) is a smart move that pays off. This is mostly attributable to the generous grants offered by both levels of government in Quebec, which match 30% to 60%1 of your contributions.
We hope the above clears things up regarding the changes to this family benefit and that this information will help you make a well-advised decision on how to put this money to work.
Have a great summer!
1. Canada Education Savings Grant (CESG) of 20% to 40%. Quebec Education Savings Incentive (QESI) of 10% to 20%.