Education Bonus Post – Saving the Canada Child Tax Benefit

One last tip about educational savings. You can possibly reduce your own taxes by investing the Canada Child Tax Benefit or Universal Child Care Benefit under your child's name. See this quote from the this page on the Canada Revenue Agency website: “Generally, when you invest your money in your child's name, you must report the income from those investments. However, if you deposited Canada child tax benefit or universal child care benefit payments into a bank account or trust in your child's name, the interest earned on those payments is your child's income.” If you don't need the income…

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Saving for your Child’s Education – Comparison

In recent posts I discussed the TFSA and RESP programs. But which is the better choice when saving for your child's education? It's a complicated question without a simple answer. Let's start with a chart comparing the highlights of the two plans: Here are the most significant points to remember: With the TFSA your contribution room never goes away. Withdraw $10,000 for education and you can put it back the following calendar year. Usually higher overall limits with the TFSA (depending on number of children and number of contributors). TFSA can be used for any purpose. Using an RESP will result…

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Saving for Your Child’s Education – RESP Basics

Ideally you should start saving for your child’s education the year that they are born. But with all of the life changes that come with a new baby, investigating saving strategies probably isn’t high on your priority list. To help with that I will summarize your options to help you decide what works best for your family and your finances. Today, in this first of a series, I will provide some basic information about the Registered Education Savings Plan (RESP) and the associated Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB).  To get immediately to my recommendations click here. What is an…

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