Saving When you Have Children
When you have children, you have expenses and projects that add up. Therefore, it can be harder to manage putting money aside. But there are two elements that can help you: a registered education savings plan and allowances from the government.
An RESP or a registered education savings plan
A tool that helps parents save is the
registered education savings plan 
. It is a very interesting tool because the Québec and Canadian governments provide you with
grants of 30% when you put money in it, up to a maximum allowed. For example, if you invest $1000 in that plan for your child, you will receive $300. If your income does not exceed a certain amount, you could receive a higher grant.
The money you save under that plan continues to belong to you, therefore, if ever your child does not need it, you could transfer it to another one of your children or recover it. But, in the latter case, you will not be able to recover the government grants. There are different rules for the registered education savings plan and there are also several types. It is really worth it to inform yourself because having a return of 30% on an investment is quite rare.
Another advantage of the registered education savings plan is that it allows you to make tax‑free savings. Therefore, if you receive investment income, it is not added to your yearly income on which you pay taxes.
Allowances
Allowances from the Québec and Canadian governments for families can help you save. Their amount varies from one family to another, because it is calculated based on four criteria:
- the number of children under age 18 living with you;
- the number of children in shared custody;
- your family income;
- whether or not you are in a relationship.
This is a good boost for your budget! If you can afford it, you could save the allowances in a registered education savings plan or in a savings account devoted to your family. Whether you save that amount in full or in part, it is always reassuring to have money set aside for the future.