- Starting July 2015 the Canadian Government will start paying the increased UCCB (Universal Child Care Benefit) of $160 from the previous $100/month per child ages 0-6.
- The $60 increase also includes children ages 6-17 (previously $0).
What does this mean for your family? Some examples are here but in a nutshell, if you've filed your tax return you will receive more money in your bank account then you did last month. Also, this change is retroactive to January 2015 so this month is a super payment. *Don't forget that the UCCB is still taxable next April (so if you were making a $1,200 RSP contribution to offset, for example, make sure you adjust your deductions).
- $360/child for January-June 2015 increase
- + $160 July = $520 for every child under 6
- + $60 July = $420 for every child 6-17
Most of us could really use a cash infusion (that's over $1,000 if you have two kids under 6!) to offset our ongoing costs (childcare, children's clothing, activities, education, etc.). However, a lump sum payment such as July's is a great opportunity to immediately fund some future benefits for your child. Just a few examples:
- RESP contribution. A $500 contribution will garner a $100 grant payment (20%) and possibly more.
- Permanent life insurance. These contracts provide life insurance for life, short payment plans and increasing cash value. An asset that grows into the future (and can also be used to fund a TFSA when the child reaches age 18).
- Health insurance. No one's getting any younger and it's no secret that insurance is cheaper the younger you are. Preserve health status by locking in insurance rates now, rather than later.
It's tempting to put the money towards the house or a mini-vacation or a new pair of shoes for the little one but it can go so much father being invested for the long-term. Contact Alyx if you'd like to explore some options for your family.