What is the Canada Child Benefit (CCB) you ask?
Let us explain with a little story…
The Canada Child Benefit is a tax-free subsidy deposited each month into your bank account for each child you have until they are 18.
Think of it as free money.
What would you do if you found a $100 bill on the sidewalk in front of your house every month?
Chances are you’d be feeling pretty happy, right?!
But what would you do?
Would you save it or spend it?
So many of us would feel tempted to spend it – and that’s completely okay.
After all, you found it, didn’t have to work for it and didn’t even have to pay taxes on it.
That’s the exact feeling I get every time my wife and I receive our Canada Child Benefit for our daughter Ellie.
It’s free money from the government deposited in our bank account every month until she turns 18.
I didn’t have to do any work to earn it. There are no restrictions on how I use it. I also don’t have to pay taxes for it.
The costs that come with having a child are expensive. Everything from daycare to clothing to summer camp – they all add up!
The government understands that it’s expensive these days to raise kids which is why they recently even topped up the Canada Child Benefit with Up to $1,200 more per child for 1.6 million families across Canada.
The Canada Child Benefit is exactly like finding free money on the sidewalk. Who can say no to that?
As stated earlier, you can use the money however you like.
But take a minute to think about this…
If you’re an average family with an annual income of $91,000 you would receive $47,136 of absolutely tax-free money by the time your child is 18.
What if instead of using the money to cover daily expenses, you decided to invest this free money for your child’s future?
What if you knew today that you can invest that the $47,136 Canada Child Benefit could set up your child’s entire future, and you didn’t need to invest one dollar of your own money and that Government gift would pay for their education and give them the down payment to buy their house.
Just think about all the things your child could do if you invest that free money…
And it didn’t cost you one dollar or require you to work one hour.
When they turn 20 and decide to study abroad, it will be worth as much as $69,000.
Or when they turn 35 and want to buy a house you won’t need to take any money from your retirement, because their plan will be worth $180,000.
And what if the investment you set up for their future also paid your child a tax-free annual dividend for life?
What an incredible opportunity!
Every little bit helps and the Canada Child Benefit is the best gift the government can give to parents.
Here is a Quick Overview of How CCB Payments Work
1) CCB payments are deposited on the 20th of each month.
2) You can spend the money on daily needs or use it for your child’s education and future.
3) There are no restrictions on what you do with the free money the government gives you.
What Happens When You Spend The Money Now?
Just keep in mind that if you do spend the money now, your children will likely come to you asking for help with their education.
A recent RBC study found out that 25% of parents will give their children $60,000 for the down payment on their home.
Think about it…
What if you had a safe place to invest the government’s free money?
What if you only used 50% or $1,200 a year from the CCB to open a Child Plan?
By the time they are 20, they will have $32,038 – and by the time they are 35, they will have $70,876.
Imagine not having to stress every month about your income and taxes?
I can say from personal experience, it’s a fantastic feeling.
Insurance for Children is Canada’s leader in financial planning for children.
Our goal is to educate and empower families on how to invest in their children’s future.
If information is power, then education is empowerment!
Child Plan – the fastest growing alternative to the RESP.
Michael Lampel, President and Founder of insuranceforchildren.ca