Welcoming a child
Starting a family can have you worrying about your finances. To ease this stress, it is essential to implement an investment strategy as soon as possible.
Postsecondary studies may be light years ahead, but did you know that disposable diapers cost more than $900 per year, over three years, and that milk formula can cost $1,000 to $3,000 per year? Thankfully, it is possible to keep your head above water with proper planning.
To help future parents prepare, the Financial Consumer Agency of Canada (FCAC) has published a new guide on its website to counteract the decrease in net income, the purchase of new furniture and clothing, and even a potential move…
It is recommended that future parents first begin by determining their eligibility to the Quebec Parental Insurance Plan (QPIP), which provides up to 75% of your income, and a little more for low-income families.
Of course, you must also plan for your child’s education. The Registered Education Savings Plan (RESP) allows you to put money aside, free of taxes, for that very purpose. You can also use a TFSA, but you would not receive any additional grant. With the RESP, governments contribute to your savings with very attractive grants.
To learn more about the RESP, visit our dedicated page!