A Gift for Your Growing Family
A small gift for a big new chapter, and a few Canadian financial programs worth knowing about along the way.
Government Benefits You May Be Eligible For
Canada Child Benefit (CCB)
A tax-free monthly payment to help with the cost of raising children under 18. Most families qualify, apply as soon as possible after your child is born since it isn’t automatic.
Registered Education Savings Plan (RESP) & Canada Education Savings Grant (CESG)
Opening an RESP early lets your savings grow tax-free, and the government adds a grant on top, up to $500/year, matching 20% of your contributions, to a lifetime maximum of $7,200 per child. Starting this in year one gives it the most time to grow.
Employment Insurance (EI) Maternity & Parental Benefits
If you’re taking time off work, EI can replace a portion of your income, generally 55% of average insurable earnings up to a set weekly maximum, during maternity and parental leave. Worth applying for as soon as you stop working, not after.
Birth Registration & Social Insurance Number (SIN)
Registering your baby’s birth is handled provincially, and you’ll need that registration before applying for a SIN, which you’ll then need to open savings accounts, claim benefits, and eventually set up an RESP.
Disability Tax Credit (if applicable)
If your child has a severe and prolonged physical or mental impairment, this credit can reduce the income tax you or a supporting family member owe, and may open access to other support programs.
A Few Things Worth Reviewing With Us
Update your beneficiaries
A new child usually means it’s time to revisit who’s named on your life insurance policies, RRSPs, and other accounts, so everything reflects your growing family.
Review your life and disability insurance
Your coverage needs often change the moment you have a dependent relying on your income. Worth a quick check to make sure your protection still matches your family’s needs.
Update your will
If you don’t already have a will, or haven’t updated it since having a child, this is the moment to name a guardian and make sure your wishes are clearly documented.
Start planning for their education, even if it feels early
The earlier an RESP is opened, the more time it has to grow, and the more of the available government grant you can capture over time.
