Starting a new family is one of the most rewarding aspects you may encounter in life. For those who have had their first or second (or even third!) child, you know that this new phase in life certainly comes with its fair share of challenges. If you are starting a family or know someone who is doing so, here is a New Family Financial Checklist to help set your family up for success:
Register your child’s birth online
- If you register the birth online, you can also apply for the following at the same time:
- a birth certificate or birth certificate with parental information
- a Social Insurance Number (SIN)
- Canada child benefits (this includes the Ontario specific child benefits)
- Here is the link to the Ontario Newborn Registration Service
Open up a RESP for your child’s education
- Once you have a SIN number for your child, you can open a RESP
- The federal government matches 20% of the first $2,500 annual contribution to a maximum of $500 per plan beneficiary annually. If you have missed contribution years, don’t worry, you can catch up and we can tell you how. The lifetime maximum basic CESG per beneficiary is $7,200.
- If you have questions on how much you should be putting away for your child’s education and what type of investments to hold, we’d be happy to help!
Obtain life insurance to protect your family
- When looking at life insurance for new families, we recommend covering at least your annual income until the kids are in university and your mortgage
- Term insurance, while temporary, offers the cheapest way to buy the most coverage when your kids are young
Update your wills to ensure your child is cared for
- Most new parents will not have a will and we recommend that this be on the shopping list with diapers and baby bottles
- A will designates who will be the new guardian of your children in the event that both parents pass, instead of the courts or Children’s Aid deciding
- There are lots of other reasons to get a will, for more details or if you have questions, reach out! We can also help connect you with a qualified lawyer to get this item off your to-do list
Claim child-care expenses come tax time
- You can claim up to $8,000 per child under seven and $5,000 per child seven to 16 for child-care expenses (includes: nanny, daycare/nursery school, day or overnight camps, and more)
For more details on what you can deduct, refer to this CRA resource or our accounting partners can help you come tax time.
Phone 905-277-7924 | 1-833-ASSANTE (277-2683)