Welcoming a Baby

What to understand

• Revisit life coverage as childcare, household support, debts, and future education needs change. An increase may make sense after reviewing existing coverage and your budget.
• Include a stay-at-home parent's caregiving contribution when assessing the family's needs.
• Ask a licensed advisor whether an optional child rider is useful, available, and affordable under the policy being considered. Review its specific terms and prioritize the family's main protection needs.

What to understand

• The basic Canada Education Savings Grant adds 20% to eligible contributions, normally up to $500 on the first $2,500 contributed annually per child. The total lifetime CESG maximum is $7,200 per child.
• About $208.34 a month reaches $2,500 over a full year. At exactly $208 a month, you would contribute $2,496 and receive $499.20 in basic CESG, assuming eligibility. Coordinate contributions across all RESPs for the child.
• You can start smaller. Unused basic grant room carries forward, and eligible catch-up contributions may attract up to $1,000 of basic CESG in a year. Age and eligibility rules apply.
• Ask the provider about Social Insurance Numbers, residency, fees, investment choices, and grant applications. Eligible lower-income families may receive extra CESG or the Canada Learning Bond; the bond does not require personal contributions.

What to understand

• Build a parental-leave budget and an emergency reserve before choosing a monthly RESP commitment. Grant eligibility is not a reason to stretch beyond your means.
• Review beneficiaries and ask a lawyer or notary about wills, guardian wishes, and financial and personal-care decision documents under your province's rules.
• During pregnancy, prepare your questions and budget. After birth, gather the child's required information to open an RESP and request eligible benefits.