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
- Emergency fund
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.
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.