How to use the Canada Child Benefit to invest in your child’s future

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Information about the Canada Child Benefit and how parents can use it to invest in their child’s financial planning.

The Canada Child Benefit or CCB replaced the Canada child tax benefit (CCTB) and the universal child care benefit (UCCB) as of July 1, 2016 and is the most advanced government program created to help Canadian families since the introduction of the first Federal Family Allowance in 1944.

How is the Canada Child Benefit different from the Canada Child Tax Benefit?

Unlike previous family allowance programs which ranged from cash allowances to tax credits to expense refunds, the Canada Child Benefit is straightforward. For families with children under age 18 the Canada Child Benefit;

  1. Is paid to couple or single parent families with children until they’re 18 years old.
  2. You have complete freedom to use the funds for any purpose.
  3. The CCB is completely tax free! (you don’t pay any income taxes on the money you receive each month and no taxes are deducted from the payments you receive)
  4. The CCB is not a refund for children expenses, like child care, medication or anything.
  5. You don’t need to pay an accountant to complete any complicated forms. Your annual amount is tied directly to your income tax file at CRA so they know every year how much to pay you.

The Canada Child Benefit is a program that says to parents: you know what’s best for your child’s future, so here is the money to help you…

How does the Canada Child Benefit work?

The Canada Child Benefit is based on your family’s net annual income reported every year on your tax returns. To receive your Canada Child Benefit every year, you must file your taxes. If you don’t file your taxes they will discontinue your benefits the following year.

The Canada Child Benefit is automatically deposited into the bank account of the parent who claims the children as dependants on their tax return. The Canada Child Benefit is typically deposited into your bank account on the 19th or 20th of each month except for December when it will be deposited on the 13th.

The table below will give you an idea of the average amount you can expect to receive monthly, annually and in total over 18 years for each child.

1 Child
   Net Family Income Under 6 Age 6-17 Annual <6 Annual 6-18 Total
$80,000 $289 $206 $3,470 $2,470 $ 50,460.000
$85,000 $276 $193 $3,310 $2,310 $ 47,580.000
$90,000 $263 $179 $3,150 $2,150 $ 44,700.000
$95,000 $249 $166 $2,990 $1,990 $ 41,820.000
$100,000 $236 $153 $2,829 $1,830 $ 38,934.000
$105,000 $223 $139 $2,670 $1,670 $ 36,060.000
$110,000 $209 $126 $2,506 $1,510 $ 33,156.000
$115,000 $196 $113 $2,350 $1,350 $ 30,300.000
$120,000 $169 $99 $2,030 $1,190 $ 26,460.000
$125,000 $156 $86 $1,870 $1,030 $ 23,580.000
$130,000 $143 $73 $1,710 $870 $ 20,700.000
$135,000 $129 $59 $1,550 $710 $ 17,820.000


Insurance for Children is Canada’s leader in financial planning for children. We’re there to educate and empower families on how to invest for their children’s future.

This blog is for information purposes and is part of our continuing series of articles on financial planning for children.

Our Child Plan™ Participating Whole Life Plan is the only tax-free investment parents and grandparents can open for their children and grandchildren in Canada. From the day you open a Child Plan™, your child or grandchild will receive a tax free annual dividend for life, which will give them the freedom to study any program at any college or university around the world, down payment on their first home, start their own company if that’s their dream, or to follow any dream in life they may have.

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