Written by: Kaleido
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:
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 Kaleido's calculation tool to see just how far $20 contribution per month can go.
1. Source: https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview.html. 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.