Invest child benefit wisely to save taxes
In this short advisory video, the speaker addresses parents who receive child benefit payments. He warns against using the benefit for routine child expenses, explaining that doing so forfeits the opportunity to grow the money tax‑free. Instead, he recommends immediately depositing any child benefit into a Registered Education Savings Plan (RESP). He outlines the key advantages: the RESP’s earnings grow tax‑deferred, and when withdrawn the tax liability falls on the child, who is likely in a lower tax bracket. Additionally, the government matches a portion of RESP contributions, effectively doubling the benefit. The overall message is to treat child benefit as an investment for a child’s future education rather than current consumption.
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