Child Future Plan: What is it?

When their life becomes the most important thing in yours …

Life is getting more challenging and expensive. As if there isn’t enough worries today; the increasing cost of education, fierce competition in the workforce, & the uncertainty of government retirement plans are some of the dilemmas that our children will be faced with in greater depth in the future.

Every Family Need Financial Planning…

A Child Future Planning  is designed to provide the means necessary to plan for your children’s financial wellbeing. It can help pay for their:Post-Secondary Education

  • Marriage
  • Emergency fund
  • Vacation
  • Retirement

TIP_Center_RESP

A more common planning tool that Canadians are familiar with is a Registered Education Savings Plan (RESP).

RESPs are an investment tool often used by parents and guardians in order to help save for a child’s post-secondary education.

The cost of education in Canada is drastically increasing and it is best to prepare. According to a CBC report in 2013, tuition and other compulsory fees are projected to  triple  in comparison from 1990 to 2017. Per the same report, in 1990-1991, Canadian fees averaged $2,243. Taking inflation into consideration, the total is expected to rise to a staggering total of $6,842 in 2016-2017.

Keep In Mind
  • The biggest advantages of RESPs is the 20% Continuing Education Savings Grant.
  • RESPs are not for everyone, due to the restrictions and guidelines (which we will discuss further).

Luckily, there are many ways to save for a child’s future, with RESPs being atop the list of the most common solutions. Based on a client’s preference we can set up a savings plan that actually possesses tax advantages, among other benefits.

Another popular plan to consider is the Child Future Plan. There are much fewer restrictions.  Savings can be used for a variety of purposes. i.e., education, marriage, or even to help buy your first home.

In the next TIP Center blog, we will take a look at a variety of different options you have regarding future financial planning for children, beginning with, RESP’s: What are they?

For more information, or to address any inquiries you may have about the subject matter, please feel free to reach out to us at: