The New Universal Child Care Benefit (UCCB) and RESP

Under the proposed enhancements to the UCCB, families would receive almost $2,000 ($1,920) per year for each child under 6 and $720 per year for each child aged 6 through 17. The new benefit amounts would be retroactive to January 1, 2015 and be reflected in monthly payments to families in July 2015.                   

That’s a total of up to $20,160 per child in lifetime benefits.

With a Registered Education Savings Plan, you’re eligible to receive the Canada Education Savings Grant (CESG), which matches 20% of annual contributions up to a maximum of $500 per year and $7,200 lifetime limit per child.

RESP maximum annual contribution is $2500. Average cost for a 4 year degree is $66,000, depending on whether Room & Board is also needed.

In this unpredictable economic climate and rising costs of tuition, starting early is key to ensure the financial stability of your child.  Unfortunately, plans like an RRSP or even a TFSA are unavailable to those under the age of 18, making the Registered Education Savings Plan (RESP) a uniquely attractive choice of investment for your child’s future and post-secondary education.

The primary benefit of an RESP is the government grants.  Until your child turns 18, when they would be eilgible for other forms of savings plans, the federal government may add up to $7200 to your RESP contributions.

Yet, the perks of an RESP go much farther.  Growth,  along with contributions, is tax-sheltered while accumulating in the savings plan.  When the funds are released to your child for their post- secondary education, they are taxed through your child.  As a student, your child would often be required to pay little to no tax.

Choosing an RESP is a low risk, high reward way to supplement you and your child’s long-term financial planning.  If you have any questions about the benefits, feel free to contact me at or 604 565 9607.

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